. If Amazon were to purchase UPS, this would be an example of a: A. Horizontal merger B. Vertical merger C. Conglomerate merger D. Parallel merger
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5. If Amazon were to purchase UPS, this would be an example of a:
A. Horizontal merger
B. Vertical merger
C. Conglomerate merger
D. Parallel merger
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- What is the difference between a vertical merger and a horizontal merger? Give an example of each category.3.If two construction companies merge, this is called a ________ merger, whereas if a bakery merges with a flour mill, this is called a ________ merger. a) horizontal, vertical b) conglomerate, horizontal c) natural, vertical d) conglomerate, verticalWhy some firms favour horizontal merger rather than vertical merger? Provide your answer with examples.
- Suppose a proposed merger of firms would simultaneously lessen competition and reduce unit costs through economies of scale. Do you think such a merger should be allowed?Using the IRAC rule,please answer and discuss the question. John entered into a contract for the sale of his restaurant to Catherine. One of the terms of the contract was that Catherine would not open up a similar business within 20 miles of the location of the restaurant being sold. About a month after the sale John noticed a spanking new restaurants two blocks down the road from his recently purchased business. When he found out that the proprietor of the new restaurant was Catherine, he sued for breach of contract. Explain the likely outcome based on the laws governing legality.1. What is the Nash equilibrium in the price competition homogeneous-product oligopoly? 2. Why do the firms charge the same price in equilibrium?
- Assume that Starbucks and Gloria Jeans are offering coffees with slightly different taste and acidity. Assume that Starbucks and Gloria Jeans decided to merge. What type of merger will that be? Describe briefly using words. Will a merger be beneficial for the firms? Discuss briefly using words. DO NOT draw graphs. DO NOT do any calculationsLet's assume that the biggest two firms in the video game sector merged and that the market share of the new firm representing the two merged firms is equal to 39% of the market. Let's assume that after merger HHI of the video game industry is 2071. Based on the Federal Trade Commission's historical standards for mergers, would the Federal Trade Commission certify this merger? No, the FTC would probably challenge the merger. No answer text provided. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. Yes, the FTC would ignore the merger and allow it to go through.The following table presents information on the production of five firms that produce all of the output in an industry. Firm A B с D E Output (units) 900 900 900 100 100 Instructions: Round your answers to two decimal places. a. What is the four-firm concentration ratio for this industry? b. What is the Herfindahl-Hirschman Index for this industry?
- Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? Book percent Print b. What is the Herfindahl index for the hamburger industry in this town? erences c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = |percent Herfindahl index =QUESTION 3 Smalltown has 140 residents and two mobile phone providers: Verizon and AT&T Each firm's costs: FC = $0, MC = $10. Assume the two firms collude, how much profit does each make if they share it equally? P Q TR TC Profit 45 50 40 60 35 70 30 80 25 90 20 100 15 110 10 120 5 130 0 140 O Q = 30, P = $40, profits = $900 Q = 40, P = $30, profits = $800 Q = 60, P = $10, profits = $0 Q =25, P = $45, profits = $8755.4 Food service firms buy meat, vegetables, and other foods and resell them to restaurants, schools, and hospitals. US Foods and Sysco are by far the largest firms in the indus- try. In 2015, these firms were attempting to combine or merge to form a single firm. A news story quoted one res- taurant owner as saying: "There was definite panic in the restaurant industry... when the merger was announced. They know they're going to get squeezed." a. Analyze the effect on the food service market of US Foods and Sysco combining. Draw a graph to illustrate your answer. For simplicity, assume that the market was perfectly competitive before the firms combined and would be a monopoly afterward. Be sure your graph shows changes in the equilibrium price, the equilibrium quantity, consumer surplus, producer surplus, and deadweight loss. b. Why would restaurant owners believe they would be "squeezed" by this development?