The Federal Trade Commission (FTC) defines 3 types of mergers: horizontal, vertical and potentialcompetition. Use the link below to learn more about the different types of mergers. After reading throughthe information, explain how each type of merger works.https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/mergers/competitive-effects5) Production Theory - The table below shows the production capabilities for a small fishing operation in thePacific Northwest. Total Product (TP) refers to the number of pounds caught in a day. Fill in the missingcolumns below.L TP-q MP00.0017.00218.00333.00446.00555.00662.007 67.00871.009 74.001076.0011 76.0012 74.00AP A horizontal merger is a merger between firms that produce and sell the same products. When one firmwants to buy another firm, the buyer must obtain approval from the U.S Department of Justice and theFederal Trade Communication. These agencies are charged with evaluating the impact of the merger onmarket participants and have the power to approve or deny any merger. To evaluate the impact of themerger, the agencies use the Herfindahl Hirschman Index (HHI) to study changes in competition. It'simportant to note that the agencies evaluate other market factors as well.FirmsDollar TreeDollar GeneralFamily Dollar99 Cent Only StoreDollar WowDollar Centrala.) Calculate the HHI for the industry. Show work.Market Sales ($ millions)121088102b.) Assume that Dollar Tree would like to buy (merge with) Dollar Central. Calculate the post-merger HHI.Show work.c.) Assume the Federal Trade Commission uses the following rule:AHHI < 100 → Merger will be approved.AHHI ≥100 → Merger will be denied.Based on the data, will the merger between Dollar Tree and Dollar Central be approved or denied?Explain.

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The Federal Trade Commission (FTC) defines 3 types of mergers: horizontal, vertical and potential competition. Use the link below to learn more about the different types of mergers. After reading through the information, explain how each type of merger works. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/mergers/competitive-effects

The Federal Trade Commission (FTC) defines 3 types of mergers: horizontal, vertical and potential competition. Use the link below to learn more about the different types of mergers. After reading through the information, explain how each type of merger works. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/mergers/competitive-effects

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.9P

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A horizontal merger is a merger between firms that produce and sell the same products. When one firm wants to buy another firm, the buyer must obtain approval from the U.S Department of Justice and the Federal Trade Communication. These agencies are charged with evaluating the impact of the merger on market participants and have the power to approve or deny any merger. To evaluate the impact of the merger, the agencies use the Herfindahl Hirschman Index (HHI) to study changes in competition. It's important to note that the agencies evaluate other market factors as well. Firms Dollar Tree Dollar General Family Dollar 99 Cent Only Store Dollar Wow Dollar Central a.) Calculate the HHI for the industry. Show work. Market Sales ($ millions) 12 10 8 8 10 2 b.) Assume that Dollar Tree would like to buy (merge with) Dollar Central. Calculate the post-merger HHI. Show work. c.) Assume the Federal Trade Commission uses the following rule: AHHI < 100 → Merger will be approved. AHHI ≥ 100 → Merger…
The Department of Justice and the Federal Trade Commission use the HI calculation for a market to evaluate proposed horizontal mergers. For example, if the post-merger HHI is below ——- , then the market is not concentrated, so mergers in them are not challenged; however, at the other extreme, if the post-merger HHI is above ——- then the market is highly concentrated, and mergers that increase the HHI by 100 to 200 points may be challenged and mergers that increase the HHI by more than 200 points will likely be challenged. (Enter your responses as integers.)
NutraSweet Aspartame is a low-calorie, high-intensity sweetener known by Monsanto’s brand name, NutraSweet. It was the key to the success of Diet Coke and Diet Pepsi in the 1980s. NutraSweet made billions of dollars, yielding very high profits. Such profits usually attract entry, but in this case entry was barred by a patent on the sweetener and because the process of creating the sweetener was expensive and difficult. Monsanto had a distinct capability—its monopoly. It had also created another strategic asset—the NutraSweet brand name as represented by its trademark ‘swirl.’ The problem was that Monsanto’s patent was about to expire. As a result, the Holland Sweetener Company began building an aspartame plant in Geleen, the Netherlands, to challenge Monsanto’s hold on the aspartame market. Holland Sweetener was a joint venture between the Japanese Tosoh Corporation and DSM (Dutch State Mines). What did Monsanto do? Why? What did Holland Sweetener do? Why?
There is a Jexaco gas station right across the street from a Jalero station in Pennsylvania It is safe to assume that they compete locally for the same consumers and can observe the prices posted on each other's marquees. Demand for gasoline in this local market is Q = 80 − 6P, and both stations obtain gasoline from their supplier at $2.20 per gallon. On the day that both franchises opened for business, each owner was observed changing the price of gas advertised on its marquee more than 10 times; the owner of Jexaco lowered its price to slightly undercut Jalero's price, and the owner of Jalero lowered its price to beat Jexaco's. Since then, prices appear to have stabilized. Which of the oligopoly models is most suitable for explaining this behavior by these firms? Under current conditions, how many gallons of gasoline are sold in the market, and at what price? Would your answer differ if Jalero had service attendants available to fill consumers' tanks but Jexaco was only a…
Suppose the European Union (EU) is investigating a proposed merger between two of largest distillers of premium Scotch liquor. Based on estimates from the EU’s economists, these two firms have a combined market share of about two-thirds of all sales in the relevant market. The only remaining firm controls the other one-third of the market. Economists have estimated that the wholesale market price elasticity of demand for Scotch is −1.3 and the unit cost to produce and distribute the Scotch is 16.20 per liter. Using the available information, provide quantitative estimates of the pre- and post-merger prices for Scotch in the wholesale market. In your opinion, is the EU’s concern about the merger justified? Why or Why not?
Several Governments in CARICOM nations are reluctant to allow the provision oftelecommunication services by multiple providers. They prefer that a GovernmentAgency provides these services as they believe that consumers will be protected.However the revenue they gain should not be ignored as a possible motive. A recentstudy found that 8 countries out of the 15 in the CARICOM nations’ havetelecommunication services being provided by the a state company. For example, in St.Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizensand students and also provide a lower price for individual who purchase multiple plans.Of note, the remaining CARICOM nations, including Trinidad and Tobago, have openedtheir markets to competition. These countries have seen increased advertising amongcompetitors to market their product.i. State what market structure exists in St. Lucia and illustrate how equilibrium priceand quantity determined in this industry. ii. Can excess…
A wholesaler (upstream firm) sells a product to a retailer (downstream firm). Both the wholesaler and the retailer are monopolists. The wholesaler faces a constant marginal cost of $2 and charges the retailer a wholesale price te: The retailer resells the product to final consumers at price P and the wholesale price to is its only cost. The demand for the good is P-12-Q. For your calculations below, assume that both the P and ware measured in dollars per unit. Hint. The retailer's profit function is (P-w)Q. a (8) Find the profit maximizing retail and wholesale prices and quantities b (2). Using your answers in (a), calculate the retailer's and wholesaler's profits Please do fast ASAP fast
The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from each other and can observe the prices posted on each other’s marquees. Demand for gasoline in this market is Q = 80 − 6P, and both franchises obtain gasoline from their supplier at $2.20 per gallon. On the day that both franchises opened for business, each owner was observed changing the price of gasoline advertised on its marquee more than 10 times; the owner of Hull lowered its price to slightly undercut Inverted V’s price, and the owner of Inverted V lowered its advertised price to beat Hull’s price. Since then, prices appear to have stabilized. Under current conditions, how many gallons of gasoline are sold in the market, and at what price? Would your answer differ if Hull had service attendants available to fill consumers’ tanks but Inverted V was only a self-service station? Explain
The Jakarta Post - Coordinating Maritime Affairs Minister Luhut Pandjaitan said he wants to push for the emergence of a new player in the jet fuel or avtur business in an effort to lower airfares. The market is currently dominated by state-owned energy company Pertamina. Previously, President Joko Widodo criticized Pertamina for “monopolizing” the avtur business that was blamed for the high price of the commodity. “Because of a monopolistic market, the price isn’t competitive. Many want to sell avtur, and it will lead to lower prices and encourage efficiency.” Jokowi said. Do you agree with the statements? ? Use a relevant graph to help explain your answer. (Hint: Use graphical analysis to compare the condition under perfect competition and monopoly markets in your answer)
BigPharma is one of the leading industry providing medicines in all over the world. This industry spends a massive amount on research and development in the field of medicine. Revenue of this industry was estimated at 610 billion Dollars in 2021. Most of the drugs of BigPharma are patented. Recently BigPharma introduced the ViraBloc drug which is very effective for the new corona-virus variant Theta. This industry has decided not to patent this drug. This act will be useful for the consumers because in this way, more producers can produce this drug which will be good for consumers. The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), also known as trade association for the innovative biopharmaceutical industry, assured that by the end of 2022, enough vaccinations would be available to immunize everyone. They predicted that supply would likely to exceed demand. Suppose Demand function of this industry is given as follows: Qd= 75-20P+ 2P 2 Where ‘P’ is…
What is the approximate value of Annie’s brand/store compared to Sam’s for an otherwise equal apple tree? What is the estimate for market share for Annie if she sells Gal Apple Trees at $15.95 vs. Sam selling golden Delicious trees at $24.95.?
In a certain region, there are four major healthcare providers: A HealthCare, B CarePlus, C MedWell, and D LifeCare. The market shares of these providers in terms of patient visits are as follows: A HealthCare: 35% B CarePlus: 25% C MedWell: 20% D LifeCare: 20% Calculate the Herfindahl-Hirschman Index (HHI) for the healthcare provider market in this region. Is this market considered concentrated or competitive according to the HHI interpretation?