Macmillan Learning o Kiviaq is a little known regional delicacy served during the winter time and at celebrations near the arctic circle. Although some people have found the taste-and smell—to be overpowering, a few exuberant companies have chosen to produce kiviaq for the masses so that the world may know its unique taste. The table shows the market shares for kiviaq producers in Inuit territory. Company Market share Siorapaluk 43% Ikuo 19% Kivitoo 18% Taloyoak 13% Auk 7% a. Use the data in the table to calculate the Herfindahl- Hirschman Index (HHI) for the market for kiviaq. HHI: b. Based on the HHI that you calculated, what kind of market does kiviaq have? c. Assume Siorapaluk and Ikuo propose a corporate merger because they think together they can make the best kiviaq the world will ever know. Calculate the new HHI if the merger were to occur. HHI: d. Assume Canadian parliament wants to review the merger. Upon scrutiny,

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter13: Monopoly And Antitrust
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Macmillan Learning
o Kiviaq is a little known regional delicacy served during the winter time and at celebrations near the arctic circle. Although some
people have found the taste-and smell—to be overpowering, a few exuberant companies have chosen to produce kiviaq for the
masses so that the world may know its unique taste. The table shows the market shares for kiviaq producers in Inuit territory.
Company
Market share
Siorapaluk
43%
Ikuo
19%
Kivitoo
18%
Taloyoak
13%
Auk
7%
a. Use the data in the table to calculate the Herfindahl-
Hirschman Index (HHI) for the market for kiviaq.
HHI:
b. Based on the HHI that you calculated, what kind of market does kiviaq have?
c. Assume Siorapaluk and Ikuo propose a corporate merger
because they think together they can make the best kiviaq the
world will ever know. Calculate the new HHI if the merger
were to occur.
HHI:
d. Assume Canadian parliament wants to review the merger. Upon scrutiny,
Transcribed Image Text:Macmillan Learning o Kiviaq is a little known regional delicacy served during the winter time and at celebrations near the arctic circle. Although some people have found the taste-and smell—to be overpowering, a few exuberant companies have chosen to produce kiviaq for the masses so that the world may know its unique taste. The table shows the market shares for kiviaq producers in Inuit territory. Company Market share Siorapaluk 43% Ikuo 19% Kivitoo 18% Taloyoak 13% Auk 7% a. Use the data in the table to calculate the Herfindahl- Hirschman Index (HHI) for the market for kiviaq. HHI: b. Based on the HHI that you calculated, what kind of market does kiviaq have? c. Assume Siorapaluk and Ikuo propose a corporate merger because they think together they can make the best kiviaq the world will ever know. Calculate the new HHI if the merger were to occur. HHI: d. Assume Canadian parliament wants to review the merger. Upon scrutiny,
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