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Jan 9, 2024
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Question 1
5 out of 5 points
Integrated Software, Inc., conditions the sale of one of its products on Inventory Office System's agreeing
to buy another of Integrated's products. This deal is
Selected Answer:
legal, depending on its purpose and the effect on competition.
Question 2
0 out of 5 points
Mergers between firms that compete in the same market are vertical mergers.
Selected Answer:
True
Question 3
5 out of 5 points
Most group boycotts are legal.
Selected Answer:
False
Question 4
5 out of 5 points
USA Cellphone Corporation requires all distributors of its products to sell the products at specified
minimum prices. This resale price maintenance agreement is
Selected Answer:
subject to evaluation under the rule of reason.
Question 5
5 out of 5 points
A suit is filed against Urbana Corporation, alleging that the firm committed the offense of monopolization.
To determine whether Urbana has monopoly power requires looking at
Selected Answer:
the relevant geographic market and the relevant product market.
Question 6
5 out of 5 points
A firm may be a monopolist even though it is not the sole seller in a market.
Selected Answer:
True
Question 7
5 out of 5 points
When a small number of companies share a large part of a market, the market is concentrated.
Selected Answer:
True
Question 8
0 out of 5 points
Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are distributed to
authorized dealers, including Macho Motors, Inc. Macho operates dealerships in several locations.
Lightning imposes territorial restrictions on Macho to insulate other dealers from direct competition. This is
Selected Answer:
a legal restraint of trade.
Question 9
5 out of 5 points
Any action challenged as an attempt to monopolize must have been specifically intended to exclude
competitors and garner monopoly power.
Selected Answer:
True
Question 10
0 out of 5 points
The basic purpose of antitrust law is to restrict competition.
Selected Answer:
True
Question 11
5 out of 5 points
To prevent its competitors from obtaining sufficient supplies to make their products, Molded Plastics, Inc.,
uses its market power to increase the prices of those supplies. This is
Selected Answer:
predatory bidding.
Question 12
5 out of 5 points
Resale price maintenance agreements are subject to analysis under the rule of reason.
Selected Answer:
True
Question 13
5 out of 5 points
Only the U.S. Department of Justice can prosecute violations of all of the antitrust laws.
Selected Answer:
False
Question 14
5 out of 5 points
Monopsony power is market power on the buy side of a market.
Selected Answer:
True
Question 15
5 out of 5 points
Delta Services, Inc., is the major wholesale distributor of software in the state of Florida. Its closest
competitor is Efficient Systems Company, another Florida firm. The two firms agree that Delta will operate
in south Florida and Efficient will operate in north Florida. This is
Selected Answer:
a market division.
Question 16
5 out of 5 points
Under the rule of reason, a court will consider the effect or the potential effect of a business agreement on
competition.
Selected Answer:
True
Question 17
5 out of 5 points
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Related Questions
Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based
in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various
companies throughout the four countries. It also markets its supplies through social media and brand ambassador
and retail clients can make orders over the phone and they ship the supplies upon demand.
The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian
firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and
Jamaica. The marketing and transportation costs in these countries are very high.
Section 1
a) Duncan Multinational Corporation plans to penetrate either the Jamaican, Barbados or Guyana market.
Discuss two factors that deserve to be considered in deciding which market is more feasible?
b) Discuss a demand-related factor and supply-related factor, that may influence exchange…
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Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companies throughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand.The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.Section 1
Duncan Multinational Corporation plans to penetrate either the Jamaican, Barbados or Guyana market. In 600 words, discuss two factors that deserve to be considered in deciding which market is more feasible?
in 600 words, discuss a demand-related factor and supply-related factor, that may…
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Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companies throughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand.The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.
Section 2Consider the information in Unit two material and using your own research on the situation in Jamaica, answer the following questions:a) In 600 words and In your opinion, which two factors affecting exchange rates, has the most impact in Jamaica? b) in 500 words, does the most important…
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Question 8
There are currently 7 firms in the market for office supplies with market shares
given by 50%, 20 %, 10%, 5%, 5%, 5%, 5%. The two firms with a market share of
20% and 10% decide to merge. The department of justice will typically
500
reject the merger
challenge the merger
not challenge the merger
No answer text provided.
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question #13
There are 5000 firms in an industry, and each firm has a market share of 0.02 percent. The industry's Herfindahl index is
Numeric Response
C
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Firm
Market Share (%)
A
18
B
17
C
17
D
17
E
16
F
15
Refer to the data. Suppose that firms in this industry split up such that there were 20 firms, each with a 5 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be
arrow_forward
Zyon pharma is a small company that specializes in contact lenses. They purchase another company that specializes in contact lens solution. This is an example of:
O
Selective merger
O
None of the above
C
Horizontal merger
Vertical merger
arrow_forward
(a) 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?
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Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companiesthroughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand. The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.
Discuss a demand-related factor and supply-related factor, that may influence exchange rate movements in Jamaica and Barbados. Include any possible government-related factors and be specific. (Tie your description to the specific Duncan Multinational Corporation case background provided here).
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Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to various companiesthroughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand. The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.
using research on the situation in St.Lucia or any other Caribbean country of your choice, answer the following questions:
a) In your opinion, which two factors affecting exchange rates, has the most impact in your, or your chosen, jurisdiction?
( b) Does the most important factor…
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(b) Two hotels, Hotel Sandy and Hotel Magda, are competing for a limited number of tourists. The hotels
have approval to either expand hotel operations, or add recreational water sports to their offerings. No
one hotel has approval do both of these changes. A research company has determined that the
following outcomes are likely:
If Hotel Sandy expands, and Hotel Magda adds water sports, Hotel Sandy will increase its market share
by 1%, and Hotel Magda will increase its market share by 3%.
If Hotel Sandy adds water sports, and Hotel Magda expands, Hotel Sandy will decrease its market
share by 5%, and Hotel Magda will increase its market share by 2%.
If both hotels add water sports, Hotel Sandy will increase its market share by 4%, and Hotel Magda
will increase its market share by 5%.
If both hotels expand, Hotel Sandy will increase its market share by 2%, and Hotel Magda will
decrease its market share by 5%.
Given that both hotels employ game theory, what course of action would each…
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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…
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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…
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16-1 Newspaper Bargaining
Two equal-sized newspapers have an overlap in circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to advertise in both, because they’re unwilling to pay twice to reach the same subscribers. What’s the likely bargaining negotiation outcome if the advertisers bargain by telling each newspaper that they’re going to reach an agreement with the other newspaper, so the gains to reaching agreement are only $9? Suppose the two newspapers merge. What is the likely post-merger bargaining outcome? these would be most advantageous from a bargaining position?
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10. Prove the Engel aggregation (equation ??).
11. Prove the Cournot aggregation (equation ??).
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Duncan Multinational Corporation is a global manufacturer and distributor of household appliances. It is based in China, United States, Trinidad, and the United Kingdom. Sixty percent (60%) of supplies are sent to variouscompaniesthroughout the four countries. It also markets its supplies through social media and brand ambassador and retail clients can make orders over the phone and they ship the supplies upon demand.The main competition for Duncan Multinational Corporation comes from one U.S. firm and one Canadian firm. The U.S firm and Canadian firm have approximately 45% market share in Barbados, Guyana and Jamaica. The marketing and transportation costs in these countries are very high.Section 1a) Duncan Multinational Corporation plans to penetrate either the Jamaican, Barbados or Guyana market.Discuss two factors that deserve to be considered in deciding which market is more feasible?b) Discuss a demand-related factor and supply-related factor, that may influence exchange rate…
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Find the concentration ratio of the market whereby
the top 4 firms share percentage is as :-
30, 28 , 21 ans 15
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A market has 3 firms. Firm 1 has 37%, firm 2 has 17% and firm 3 has 46%
of the total market share. If firm 1 and firm 2 were to merge, calculate the pre-
merger and post-merger Hirschmann-Herfindahl Index in the market. If these 3
firms were based in the US, would this merger likely be challenged by the US
Department of Justice? If these 3 firms were under the jurisdiction of the European
Commission, what criteria could the European Commission use to argue that firm 1
and 2 should not be allowed to merge?
5.
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PQ7.1
Case:
A Monopolist is producing at a point at which Marginal Cost exceeds Marginal
Revenue.
Question:
How should the Monopolist adjust the Firm's Output to increase
Company Profit?
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Suppose that in the market for sunglasses, market share is divided among six companies in the following manner:
Firm
Sun Shades
Cool Shades
UV Shield
Shady Eyewear
Tinted Windows
Sun Fashion
Market Share
90%
3%
2%
2%
2%
1%
Based on the Herfindahl index of the market for sunglasses, the FTC would
challenge
not challenge
encourage
a merger between UV Shield and Tinted Windows.
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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.?
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Firm
Market Share (%)
A
20
B
20
C
20
D
20
E
10
F
10
Refer to the data. If all the firms in the industry merged into a single firm, the Herfindahl index would become
Group of answer choices
100.
1,000.
10,000.
100,000.
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Q1: What is the, HHI, Herfindahl-Hirschman Index for an industry where six companies each have a market share of 15% and one company which has a market share of 10%?
Q2:About fifty years ago, the EPA, Environmental Protection Agency, embraced command and control laws. Later on, the EPA made adjustments and updates. These laws and their adjustments,
a/ draws distinctions between the needs of firms and costly equipment upgrades.
b/ are given considerable credit for cleaner air and water in recent decades.
c/ were an inexpensive incentive for industrial polluters to improve performance.
d/ were necessary as US industries had zero incentive to control pollution.
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Company Market Share
Toshiba
10%
Dell
10%
HP
15%
Sony
10%
Refer to the table above, which details laptop firms' market shares. Based on the Herfindahl Index
(HHI) for the laptop market would the Justice Department allow a merger between Sony and Dell?
Yes, because the HHI was below 1800 before the merger
No, because the HHI was below 1800 before the merger
Yes, because the HHI was below 1800 before the merger and the HHI increases by more than 100
No, because the HHI was below 1800 before the merger and the HHI increases by more than 100
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Question: Which strategies are the dominant ones for Spotify and Joox?
(Kindly please explain as much as possible. Sincerely thanks)
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High Price | Low Price
X = $625
X = $725
Firm Y
Low Price High Price
Y = $625 Y = $475
X = $475 X = $400
Y = $725 Y = $400
Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit
in thousands of dollars for a high-price or a low-price strategy. The structure of the payoffs suggests
that
Multiple Choice
O
both firms have a dominant strategy.
there is no Nash equilibrium.
If this is a repeated game, firms will maximize long-run profits by alternating high
and low prices.
there are first-mover advantages if this is a sequential game.
e/ R
monc
C
Inc
Can
There are 4 ster
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Question 2
Amazon could launch a smartphone this year that costs “a fraction” of what Apple charges for its iPhone, a new report says. Amir Efrati at The Information spills details from an allegedly leaked internal Amazon document. The paperwork is said to have been produced by a potential partner and two people who were involved in discussions with Amazon. According to Efrati, the document discussed strategies for penetrating smartphone markets in China, Europe and the United States. Earlier discussions also mentioned Latin America as a possibility. The phone, which has been referred to as “Project Aria,” is likely to go on sale this year, according to Efrati. There’s no specific price, but he says Amazon is “determined” to “keep the phone at a small fraction of the iPhone’s $550-and-up price tag.” If Amazon does launch a smartphone this year, it’s unclear if it will fall under the company’s own brand or if it will work with a partner. Efrati says Amazon was “in talks” with “multiple…
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1) Patents and Trade Secrets
A firm can invent a new product. That firm is the only entity in that world that can invent the
product. Doing so leads to a research cost of r, to be paid once in the first period. The monopoly
price for this new product is 6$ per unit and the firm can produce this good, if research have
been done, at a cost of where q is the quantity of good produced. Time is discrete and the
firm faces the same price and cost function every period. Without a patent, other firms enter
the market and those firms can produce the product more efficiently, therefore without a patent
the firm makes 0 profit.
a) What is the value for the firm of a patent of infinite duration? Assume a discount factor
B = 0.9.
b) Suppose that there is no possibility for the firm of keeping a trade secret. The research
cost for that good is 30$. The government can create a patent for the good before the
firm has to make a research decision. The terms of the patent cannot be changed after its…
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Please answer # 5 only.
The profits of the four major networks (CBS, NBC, ABC and Fox) depend significantly on the ratings of its prime time shows. The higher the ratings, the higher the price the network can charge for advertising and the higher the profits of the network. To keep things simple, we will focus on two networks, CBS and NBC, and two of the prime time spots, 8-9PM and 9-10PM.
Each network needs to decide which time slot to place its hit show, 8-9PM or 9-10PM. The other time slot will be filled by a run of the mill show.
The following payoff matrix shows the total number of viewers (in millions) if each network places its hit show in each of the time slots:
CBS
8-9PM time slot
9-10PM time slot
NBC
8-9PM time slot
100, 110
85, 120
9-10PM time slot
120, 40
70, 90
If you are the program manager for CBS, what time slot would you place your hit TV show (assuming that your goal is to maximize the number of viewers)? Please explain…
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An industry has four firms, each with a market share of 25 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. If two of the firms in the industry seek to merge, this action would most likely be opposed by the government because the Herfindahl index for the industry is
Multiple Choice
2,500 and the merger would increase the index by 1000.
5,000 and the merger would increase the index by 2000.
3,000 and the merger would increase the index by 2000.
2,500 and the merger would increase the index by 1250.
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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?
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