PRINCIPLES OF MICROECONOMICS (OER)
2nd Edition
ISBN: 9781947172340
Author: Timothy Taylor, Steven A. Greenlaw
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 11, Problem 36P
Use Table 11.5 and Table 11.6 to calculate the Herfindal-Hirschman Index for the U.S. auto market. Would the FTC approve a merger between GM and Ford?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Use the table to calculate the Herfindal-Hirschman Index for the U.S. auto market. Would the FTC approve a merger between GM and Ford?
map/ihdex.html?_con=con&external_browser%3D0&launchUrl=https%253A%252F%252Fnewconnect.m..
Because of their unique expertise with explosives, the Zambino brothers have long enjoyed a monopoly of the European market for
public fireworks displays for crowds above a quarter of a million. The annual demand for these fireworks displays is P= 160 - 1Q. The
marginal cost of putting on a fireworks display is 55. A family dispute broke the firm in two. Alfredo Zambino now runs one firm and
Luigi Zambino runs the other. They still have the same marginal costs, but now they are Cournot duopolists. How much profit has the
family lost? (Round your answer to 2 decimal places (e.g., 32.16). Negative answer should be indicated by a minus sign.)
00:24
P Type here to search
14/02/2022
acer
Choose the most appropriate answer.
1.1 Read the following extract and answer question 1.1, 1.2. Evidence of dominationBoth the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominantacross the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they haveentered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacomto provide mobile services, and Liquid and Rain are disincentivised from competing aggressively in the mobilemarket due to the lucrative deals they have struck to provide capacity to either Vodacom or MTN, or both. Thishas limited their ability to compete independently – leaving Telkom as the only entity in the position to be able tochallenge the “cosy” market structure head-on.Source: https://techcentral.co.za/mcleod-is-wrong-about-telkom/110373/Accessed: 19/08/21
The economic argument being expressed in this extract is that of __________ and has the…
Chapter 11 Solutions
PRINCIPLES OF MICROECONOMICS (OER)
Ch. 11 - Is it true that a merger between two films that...Ch. 11 - Is it true that the four-firm concentration ratio...Ch. 11 - Some years ago. two intercity bus companies,...Ch. 11 - As a result of globalization and new information...Ch. 11 - Why would a firm choose to use one or more of the...Ch. 11 - Urban transit systems, especially those with rail...Ch. 11 - From the graph you drew to answer Exercise 11.6,...Ch. 11 - What real world changes made the deregulation...Ch. 11 - What are some of the benefits of the deregulation?Ch. 11 - What might some of the negatives of deregulation...
Ch. 11 - What is a corporate merger? What is an...Ch. 11 - What is the goal of antitrust policies?Ch. 11 - How do we measure a four-firm concentration ratio?...Ch. 11 - How do we measure a Herfindahl—Hirshman Index?...Ch. 11 - Why can it be difficult to decide what a market is...Ch. 11 - What is a minimum resale price maintenance...Ch. 11 - What is exclusive dealing? How might it reduce...Ch. 11 - What is a tie-in sale? How might it reduce...Ch. 11 - What is predatory pricing? How might it reduce...Ch. 11 - If public utilities are a natural monopoly, what...Ch. 11 - If public utilities are a natural monopoly, what...Ch. 11 - What is cost-plus regulation?Ch. 11 - What is price cap regulation?Ch. 11 - What is deregulation? Name some industries that...Ch. 11 - What is regulatory capture?Ch. 11 - Why does regulatory capture reduce the...Ch. 11 - Does either the four-firm concentration ratio or...Ch. 11 - What would be evidence of serious competition...Ch. 11 - Can you think of any examples of successful...Ch. 11 - If you were developing a product (like a web...Ch. 11 - In the middle of the twentieth century, major U.S....Ch. 11 - Why are urban areas willing to subsidize urban...Ch. 11 - Deregulation, like all changes in government...Ch. 11 - Do you think it is possible for government to...Ch. 11 - Use Table 11.5 to calculate the four-firm...Ch. 11 - Use Table 11.5 and Table 11.6 to calculate the...Ch. 11 - If the transit system were allowed to operate as...Ch. 11 - If the transit system were regulated to operate...Ch. 11 - If the transit system were regulated to provide...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E2-13 Identifying increases and decreases in accounts and normal balances
Learning Objective 2
Insert the mis...
Horngren's Accounting (12th Edition)
When calculating a ratio with numbers from the balance sheet and income statement, why must you use the balance...
Construction Accounting And Financial Management (4th Edition)
Define costvolumeprofit analysis.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be...
Financial Accounting (12th Edition) (What's New in Accounting)
Prepare a production cost report and journal entries (Learning Objectives 4 5) Vintage Accessories manufacture...
Managerial Accounting (5th Edition)
What are the four elements of the budgeting cycle?
Cost Accounting (15th Edition)
Knowledge Booster
Similar questions
- what is the Four-firm concentration ratio (CR4)? what is the Herfindahl-Hirshman Index (HHI)? and how are they different?arrow_forwardThe following table represents a monopoly's total cost and total revenue at different output levels. What is the fixed cost when producing 20 units? Type your numeric answer and submit 19 Output (units) 0 5 10 15 20 25 Total Cost ($) 19 20 22 25 40 70 Total Revenue ($) 0 20 30 35 40 42arrow_forwardHow do firms that have a monopoly and firms under perfect competition make similarproduction choices?arrow_forward
- When selling downloadable software, e-books, and music streaming platforms, the marginal cost of making one more unit is basically zero. The average total cost is currently $1 per book. If a monopoly is operating in this market and is maximizing profits, marginal revenue is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Greater than $0 Less than $0 $0 d $1 e There is not enough information to answer this question.arrow_forwardThe accompanying graph depicts the demand and marginal revenue (MR) curves in a market served by a monopoly. Assume the firm faces a constant marginal cost of $4. Move the points to graph the marginal cost curve with the line labelled MC. Then place the point labeled E to show the firm's profit-maximizing price and level of production. Use the triangle to shade the area of deadweight loss associated with this monopoly. Price 20 19 18 17 16 15 413121 10 9 8 7 6 5 4 3 2 1 0 E MC ← MR Demand 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity deadweight lossarrow_forwardSuppose the government wants to regulate Vought International by setting a price ceiling. What is the optimal price ceiling and how much deadweight loss is there at this price?arrow_forward
- Read “YOU’RE THE ECONOMIST: The Standard Oil Monopoly” in Chapter 9. If Standard Oil was a natural monopoly, what would happen to the average cost of producing gasoline after the company was split up? Explain using an LRAC curve.arrow_forwardIllustrate with the aid of a diagram the effect on the general equilibrium of introducing a monopoly into the two-sector model. What are the efficiency implications? No AI answersarrow_forwardLook at the next information of the pharmaceutical market and find the 4 firms concentration ration. Answer must be provided in percentagearrow_forward
- Hi please assist me with this question. 1.1 Read the following extract and answer question 1.1, 1.2. Evidence of dominationBoth the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominant across the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they have entered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacom to provide mobile services, and Liquid and Rain are disincentivised from competing aggressively in the mobile market due to the lucrative deals they have struck to provide capacity to either Vodacom or MTN, or both. This has limited their ability to compete independently – leaving Telkom as the only entity in the position to be able to challenge the “cosy” market structure head-on.The economic argument being expressed in this extract is that of __________ and has the consequence of ______________. a) Market failure, externalities.b) Government…arrow_forwardGlobal Gas & Electric, a monopoly operating in the northwest Philippines, is represented in the table below. Global’s executives would not provide you any more information than what's in this table, so you'll have to fill in the blanks. Fill in the table and use it to answer the following question. (The output is measured in thousands of kilowatt hours of electricity.) Assume that if electricity is supplied by competitive firms, the market price is 55 andthe quantity supplied is 8 (‘000 KWHs)? What is the amount of the deadweight lossto society of producing electricity by monopolist Global Gas and Electric? (It is helpful to have a graphical illustration based on the data above so you couldcalculate easily the DWL. )arrow_forwardGlobal Gas & Electric, a monopoly operating in the northwest Philippines, is represented in the table below. Global’s executives would not provide you any more information than what's in this table, so you'll have to fill in the blanks. Fill in the table and use it to answer the following question. (The output is measured in thousands of kilowatt hours of electricity.) Assume that if electricity is supplied by competitive firms, the market price is 55 and the quantity supplied is 8 (‘000 KWHs)? What is the amount of the deadweight loss to society of producing electricity by monopolist Global Gas and Electric? (It is helpful to have a graphical illustration based on the data above so you could calculate easily the DWL.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc