Why some firms favour horizontal merger rather than vertical merger? Provide your answer with examples.

Q: Is it true that a merger between two firms that are not already in the top four by size can affect…

A: Herfindahl-Hirschman Index (HHI) is used to measure market concentration. It reveals the level of…

Q: As the firms operate as a cartel in the same market, they would not be able to work at different…

A: A cartel is a group of businesses that band together to make output and pricing decisions. The…

Q: What does the Chamberlin Model of price determination under duopoly assume?

A: Oligopoly is the marketplace where fewer sellers share the whole market and competing with each…

Q: If the largest two firms in the textbook industry merged, their new total market share would equal…

A: FTC stands for Federal Trade Commission. When the FTC was concocted in 1914, its objective was to…

Q: Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic…

A: Pure competition, pure monopoly, monopolistic competition, and oligopoly are some of the examples of…

Q: Short Answer Question: Consider a Bertrand Duopoly Model. Market demand curve is given by Q= 200 -…

A: Bertrand introduced a celebrated duopoly model [5], in which the firms decide simultaneously the…

Q: Suppose a proposed merger of firms would simultaneously lessen competition and reduce unit costs…

A: ANS If a merger reduces competition then because of the merger the price of output will increase…

Q: Which of the follow is the best example of a good or service sold by firms operating in an…

A: Oligopoly means where there are very few sellers in the market. And perfect competition means that…

Q: Suppose we have the "classic" Cournot duopoly model, with a linear demand curve P = a - bQ And two…

A:

Q: Suppose button industry is characterized by monopolistic competition with external economy. China is…

A: For any country to be competitive in low – cost manufacturing, there are few other factors which…

Q: Consider the following three versions of price competition: Cournot competition, Bertrand…

A: The answer is -  B. Collusion, Bertrand, Cournot.

Q: Assume that Starbucks and Gloria Jeans are offering coffees with slightly different taste and…

A: Starbucks and Gloria's merger is an example of Horizontal Merger. When two companies in the same…

Q: Three examples of oligopolies in the United States are industries that produce or sell OA. DVDs,…

A: In oligopoly marker, there is many number of buyers but only few number of sellers.There is product…

Q: The graph that accompanies this question illustrates two demand curves for a firm operating in a…

A: a. When the rivals in the economy will match any price change in the economy, then the price and…

Q: Problem 09-02 (algo) Analysts have estimated the inverse market demand in a homogeneous-product…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Suppose an industry consists of three firms. Two firms have sales of $10 each, and one firm has…

A: HHI=  10,000[ ( 10/50 )2 + ( 10/50  )2 + (30/50  )2  ] =  10,000[ ( 1/25 ) + ( 1/25 ) + ( 9/25 ) ] =…

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: Illustrate and explain how equilibrium is achieved in a monopolistic competition market structure.

A: The markets are considered to be of utmost importance for the growth, as well as development of the…

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

A: The oligopoly firm is the market structure with large number of buyers and few but big sellers,…

Q: Economists believe mergers can sometimes achieve greater efficiency than two companies that do not…

A: If two or more companies combined together to perform better than the sum of their individual effort…

Q: Two car manufacturers, Nissa and Honda, have fixed costs of $1 billion and marginal costs of $10,000…

A: There are two manufacturers, Nissan and Honda, both have a fixed cost of $1 billion and a marginal…

Q: Archer Daniels Midland (ADM) and Cargill are the biggest makers of high-fructose corn syrup (HFCS),…

A:

Q: If two television networks merge, it is a vertical merger. O True O False

A: here we can choose the correct answer as follow-

Q: From a Transaction Cost Economics perspective, when would you expect vertical integration to take…

A: Definition:   Vertical integration makes sense as a technique, as it permits an organization to…

Q: Assume a duopoly (two firms: A and B) is facing a common demand equation but different cost…

A: In the production process, the conditions and fluctuations that happen between demand and also the…

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

A: 4 firm concentration rate (C4) = share of top 4 largest firms HHI = ∑(Share of firm j)2

Q: Based on the demand schedule above, at what quantity should the firms under duopoly and collusion…

A: In a model of collusive duopoly, there is an agreement between two firms in the industry. When these…

Q: Distinguish between the following terms Bertrand and Cournot duopoly Cournot and Stackelberg…

A: A duopoly may be a market within which two firms sell a product to an oversized number of consumers.…

Q: What is the difference between a vertical merger and a horizontal merger? Give an example of each…

A: Merger: it is a combination of two existing firms which turns into a new single entity. Merger…

Q: Explain why a large firm like General Mills might use nationalaccount selling to strengthen its…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: Find the attached file.

A: Given: To Find: The four-firm concentration ratio in the industry will be:

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

A: The four firm concentration ratio is found by adding the market shares of the four largest firms.…

Q: What is the name for the condition where a firm will not take action without considering the…

A: The above-mentioned condition usually occurs in an oligopoly market. Here, there are few sellers…

Q: Explain the general meaning of the following profit payoff matrix for oligopolists C and D. All…

A: An oligopoly market is one where fewer firms are competing with each other, and they have a…

Q: Explain with the use of reaction (response) curves that two firms in a duopoly setting would and up…

A: Under cournot model of duopoly, firm competes on the output.  There are two firms in duopoly. The…

Q: Based on the demand schedule, at what quantity should the firms under duopoly and collusion will…

A: Duopoly is a situation when there are only two firms in the industry. It might be in their advantage…

Q: Q4. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods in…

A: In a Cournot Duopoly both firms simultaneously optimize their outputs taking other firm's output as…

Q: Sort each of the scenarios as to whether or not they are characteristic of price leadership. Assume…

A:

Q: The prisoner’s dilemma can be used to illustrate that by pursuing self-interest, firms will…

A: When people always have an incentive to make choices that are detrimental to the group as a whole,…

Q: Which of the following would most likely create the setting for an Oligopoly ?   A. The government…

A: An oligopoly is a market structure in which a few, sizable firms control all or almost all of the…

Financial Statements

Financial statements (or financial reports) are the formal records of the financial activities that are undertaken by a firm. They are convenient instruments used for analyzing a company’s financial position and performance. Financial ratios are created with the help of the numerical values that are derived from the financial statements. They give meaningful information about the financial performance of the company.