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?

The following table presents information on the production of five firms that produce all of the output in an industry.   Firm Output (units) A 600 B 600 C 500 D 500 E 500   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?

A10  Consider an industry with 2 firms, each firm with marginal costs equal to 0. Market demand curve is given by Q=60- P. With 2 firms, we can write Q=Q1+ Q2 . Suppose that each firm behaves as a “Cournot” competitor, that is, choose the optimal quantity maximizing the profits in a strategic way.(a) What would be the values of Q1, and Q2 in equilibrium? (b) Suppose firm 1 can “commit” its level of output in advance. In other words, if firm 1 announces to produce Q1, firm 2 needs to decide how much to produce assuming that firm 1 would indeed produce Q1. What’s the level of Q1 firm 1 would choose to maximize its profit?

identify the four us merger waves and explain the driving force behind each

What do we mean by monopolistics competition ? Why do we use this model to examine intra-industry trade

What is the difference between a vertical merger and a horizontal merger? Give an example of each category.

Compare and contrast the similarities and differences between perfect competition andmonopoly.

Let’s assume that in the state of California, there is an economic sector, where the firms have the following market shares: 17%, 3%, 10%, 14%, 9%, 24%, 8%, 15%. What is the four-firm concentration ratio of this industry?

Based on this information, the four-firm concentration ratio is?

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