According to the table at right, if the fourth and fifth largest firms in the industry merge, the four-firm concentration ratio in the industry will be Annual Sales $1,000 Firm B 900 A. 52.5 percent. B. 35.8 percent. c. 69.0 percent. D. 82.5 percent. 120 75 50 40 800 1,200 1,060 90 600

According to the table at right, if the fourth and fifth largest firms in the industry merge, the four-firm concentration ratio in the industry will be Annual Sales $1,000 Firm B 900 A. 52.5 percent. B. 35.8 percent. c. 69.0 percent. D. 82.5 percent. 120 75 50 40 800 1,200 1,060 90 600

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 12P

See similar textbooks

Related questions

Q: The inverse demand for a homogenous-product Stackelberg duopoly is P = 10-Q where Q=Q1+ Q2. %3D The…

A: Under oligopoly, there exist a few firms and a large number of buyers. The Stackelberg model is a…

Q: he table above presents the demand schedule and profits for soft drinks. Suppose the market for soft…

A: After collision they will acts as a monopoly as they will act as the sole producer of soft drink in…

Q: 4. When firms have agreements among themselves on the quantity to produce and the price at which to…

A: When firms have agreements among themselves on how much quantity to produce and what price they will…

Q: 1. Return to our Cournot competition model with two firms. Suppose now that the products aren't…

Q: Practice Problem 1: Two firms produce homogeneous goods with constant marginal costs c = 2. The…

A: Monopoly is an one firm model. Cournot-Duopoly is 2 firms model. Monopoly profits, price and…

Q: (Mergers and Public Policy) Calculate the Herfindahl-Hirschman Index (HHI) for each of the following…

A: When talking about the Herfindahl-Hirschman Index (HHI), it explains the market concentration based…

Q: Question 2 [JP.14.3.19] Consider a duopoly where the market demand is described by the equation: P =…

A: P=150-Q MC=$60

Q: 32. Consider a duopoly in which both firms have the same constant marginal cost. . When the industry…

A: Option (e) is correct.

Q: d. Use the data in the table to calculate the four-firm concentration ratio (CR4) and the Herfindahl…

A: Four firm concentration ratio = Sum of market share of largest four firms. Herfindahl–Hirschman…

Q: Based on the available data, the market elasticity of demand for your firm's product is -2.0. The…

A: Given information: Elasticity of demand = -2 Marginal cost = $50 Average total cost = $375

Q: Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior…

A: The given value are as follows. The pre-merger HHI = 2,765. Market share of fiat = 12 %. Market…

Q: 14.6. Let us ignore mixed strategies. Asahi and Kirin are the two largest sellers of beer in Japan.…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: 4. With an estimated market share of 60%, Atlas is the dominant company and the price leader in an…

A: Oligopolistic market structure is the one where there are few large firms dominating the market.…

Q: 23. Which of the following is correct about firms in an oligopoly? a. Each firm has complete control…

A: Oligopoly is a market structure, where there a few large firms.

Q: What is the concentration ratio?

A: The four-firm concentration ratio is the sum of total sales market shares of top 4 firms in the…

Q: Suppose that the top six firms in an industry have total annual sales of $250 billion, $210 billion,…

A: The four-firm ratio measures the competition level in the market. It shows the market share of the…

Q: Suppose that the top six firms in an industry have total annual sales of $150 billion, $100 billion,…

A: Given, Annual sales- 150 billion, $100 billion, $90 billion, $60 billion, $50 billion, and $10…

Q: The table below shows revenue data for different firms producing cleaning products. Use the given…

A: We have 5 firms with different revenues and thereby different market shares.

Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger…

A: Four-firm concentration ratio ( FF) , also called concentration ratio , is a way to measure the…

Q: 4. Which of the following is not an example of a firm in oligopoly market: A. Your local broadband…

A: Meaning of Oligopoly Market: The term oligopoly market refers to the situation under which there…

Q: Once more, please consider a market with eight producers that produce a total of 30,000 units. Their…

A: A market is said to be oligopoly when few firms have a large market share of output.

Q: 19. Match each statement with the appropriate market structure: A. Competitive Market B. Monoplistic…

A: There are different structures with different types of goods sold, barriers to entry, and number of…

Q: Q12 Assume the top six firms producing random access memory (RAM) in Canada comprising the industry…

A: Given: Market share of top 6 firms are : 21,17,16,11,9,6. Herfindahl index is given as: HI =…

Q: 2. Describe the fundamental difference between pure competition and non-collusive oligopoly.

A: In an economy, there are various types of market structures. They are perfect or pure competition,…

Q: Economics An industry consists of three firms with sales of $25, $45, and $55. a. Calculate the…

A: According to the question, it is given that : An industry consists of three firms. Three firms have…

Q: The following table lists the market shares of the eight firms in an industry. Market Shares of…

A: Four firm concentration ratio (C4) = Share of top 4 companies in the market

Q: Suppose that a small town has six burger shops whose respective shares of the local market are (as…

Q: 1) Consider the following hypothetical industries which are both comprised by 8 firms. In industry A…

A: "Since you have posted multiple questions, I can only answer the first question, rest you need to…

Q: Consider a duopoly market with 2 firms. Aggregate demand in this market is given by Q = 500 – P,…

A: The demand function : Q = 500 - P P = 500 - QMarginal COst MC = 20 In order to determine the…

Q: 4. Farmer Andy and Farmer Betty are the only two farmers that grow heirloom tomatoes for sale at the…

Q: explain how perfect discrimination compare against perfect competition in the industry with regards…

A: The perfect competition refers to the market where many sellers are there in the market. Perfect…

Q: 2) Assume that there are 2 firms producing an identical product. Both firms have the same total cost…

A: Disclaimer: Since you have asked multiple questions, we will solve the first question for you. if…

Q: Explain why Oligopolistic market decisions are more difficult compare to other market structures?…

A: It is true to say that oligopoly market structure has relatively difficult to understand as compared…

Q: 11. The cement industry is an example of an undifferen. tiated oligopoly. The automobile industry is…

A: Production differentiation is the process followed by the firms to differentiate their products from…

Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger…

A: a. Concentration ratio is a sum of market shares of top four firms Concentration ratio = 25 + 22 +…

Q: 25. Figure 1.7 represents an oligopoly firm. The existing price and quantity are $10 and $2,000…

A: In oligopolistic competitive market, firms are interdependent. Actions of one firm affects the…

Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger…

A: The two measures of the degree of concentration are the four-firm concentration ratio and the…

Q: The table below shows revenue data for different firms producing cell phones. Use the given…

A: We have 6 firms with different sales and market shares.

Q: The Competition Bureau in Canada wants to increase competition and reduce monopoly power. Thus it it…

A: Duopoly means only two firma are operating in the market for the product. Both firms are highly…

Question

Find the attached file.

According to the table at right, if the fourth and fifth largest firms in the industry merge, the four-firm
concentration ratio in the industry will be
Annual Sales
$1,000
Firm
B
900
A. 52.5 percent.
B. 35.8 percent.
c. 69.0 percent.
D. 82.5 percent.
120
75
50
40
800
1,200
1,060
90
600

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,765. Case’s share of that market was 22 percent, while Fiat comprised just 12 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase? Based only on this information, do you think the Justice Department would challenge the merger? Explain.
Q12 Assume the top six firms producing random access memory (RAM) in Canada comprising the industry have market shares of 21, 17, 16, 11, 9, and 6 percent. The remaining 10 firms each have market shares of 2 percent. The Herfindahl index for the RAM industry is Multiple Choice 65. 1,107. 1,264. 1,224.
suppose fiat recently entered into an agreement and plan of merger with case for $4.3 billion. prior to the merger, the market for four wheel drive tractors consisted of five firms. the market was highly concentrated, with herfindahl-hirschman index of 2,915. case's share of that market was 13 percent, while fiat comprised just 7 percent of the market. if approved, by how much would the post merger herfindahl-hirschman index increase
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 3,085. Case’s share of that market was 11 percent, while Fiat comprised just 7 percent of the market. If approved, by how much would the postmerger Herfindahl-Hirschman index increase?
In which market structure does Johnson Electronics (Pty) Ltd operate? Provide areason for your answer and what level of output maximizes the firm’s profit? Provide the reason for youranswer output price total revenue average cost total cost margnial cost profit/ loss 10 10.00 100 20.80 208 0 -108 20 10.00 200 12.40 248 4.00 -48 30 10.00 300 9.90 297 5.00 3 40 10.00 400 9.00 360 6.20 40 50 10.00 500 8.80 440 8.00 60 60 10.00 600 9.00 540 10.00 60
Firm Market Share (%) A B C D E F 30 22 18 17 7 6 Refer to the data. Suppose that firms in this industry split up such that there were 50 firms, each with a 2 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be Multiple Choice 8 percent and 200. 8 percent and 8. 200 percent and 16. 100 percent and 10,000.
(Mergers and Public Policy) Calculate the Herfindahl-Hirschman Index (HHI) for each of the following industries.Which industry is the most concentrated?a. An industry with five firms that have the followingmarketshares: 50 percent, 30 percent, 10 percent,5 percent, and 5 percentb. An industry with five firms that have the followingmarketshares: 60 percent, 20 percent, 10 percent,5 percent, and 5 percentc. An industry with five firms, each of which hasa 20 percent market share
8.In 2019, competition authorities threw out a merger of Asda and Sainsbury’s. What type of growth would the merger of Asda and Sainsbury’s have represented? a) Horizontal expansion b) Horizontal integration c) Conglomerate merger d) Vertical integration e) Horizontal alliance
1. Exercise 16.2 An industry is composed of Firm 1, which controls 50 percent of the market, Firm 2 with 30 percent of the market, and Firm 3 with 10 percent of the market. About 20 firms of approximately equal size divide the remaining 10 percent of the market. What is the Herfindahl-Hirschman Index for the industry? (Hint: Assume the 20 firms that make up 10 percent of the market constitute one firm.)What will the Herfindahl-Hirschman Index be if Firm 2 and Firm 3 merge? (Hint: Assume that the combined market share after the merger is 40 percent) Based on the HHI scores, will the government consider the merger of Firm 2 with Firm 3 to be procompetitive or anticompetitive? Anticompetitive Procompetiti
17. What is Brown Corp’s Herfindahl Index? Round to the nearest two decimal places. A. 0.27 B. 0.29 C. 0.31 D. 0.33 E. None of the above 18. If Brown takes over Green, what will be the Herfindahl Index of the combined firm? Round to the nearest two decimal places. A. 0.22 B. 0.24 C. 0.26 D. 0.28 E. None of the above 19. Brown Corporation is considering the acquisition of Green Corporation. If they do so, will the combined firm be more concentrated or less concentrated than Brown before the merger? A. More concentrated B. Less concentrated C. The same concentration D. Insufficient data E. None of the above
There are only two driveway paving companies in a small town, Asphalt, Inc. and Blacktop Bros. The inverse demand curve for the services is ? = 2040 − 20?where quantity is measured in pave jobs per month and price, in dollars per job. The firms have an identical marginal cost of $200 per driveway. If the two firms collude, splitting the work and profits evenly, how many driveways will each firm pave, and at what price? How much profit will each firm make? Does Asphalt have an incentive to cheat by paving one more driveway each month? Show it numerically.
Two ready-to-eat breakfast cereal manufacturers, Lots of Sugar and Buckets of Goo, face combined demand for their products given by Q = 75 - P. Their total costs are given by TCLots of Sugar = 0.1Q2Lots of Sugar and TCBuckets of Goo = 5QBuckets of Goo. If they successfully collude, their total profits will be: a. $62.50 b. $1,250.00 c. $125.00 d. $287.50 e. $1,287.50