Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

The following are the approximate U.S. market shares of dissimilar cigarette companies: Altria, 47 percent; Reynolds American, 26 percent; Imperial, 5 percent; Lorillard, 14 percent; total for all other brands, 8 percent. Suppose “all other brands” each have less than a one-percent share.

1) Calculate the Herfindahl for this market, showing how you arrived at this number.

2) Suppose that Reynolds American were to acquire Lorillard, as it has announced – However suppose Reynolds American is planning to not sell off any Lorillard brands. Calculate the post-merger Herfindahl, showing how you arrived at this number.

3) Would federal antitrust agencies be likely to become concerned to see a Herfindahl increase of the magnitude you computed as [(b) - (a)], as well as the projected SSNIP, and challenge the merger? Describe why or why not?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91227199

Have any Question?


Related Questions in Microeconomics

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question unemployment rate is expected to drops to 44

Question: Unemployment rate is expected to drops to 4.4 percent. Using Aggregate Demand/Aggregate Supply (AD/AS) model show the impact on real output and price level when there is: A. Drop in unemployment rate B. Higher ...

Question suppose the government decided to levy the current

Question: Suppose the government decided to levy the current 15.3% social security tax on all levels of wages and salaries, not just the first $80,000, and used all the money collected to pay for prescription drug benefi ...

Question 1search the internet for sample executive

Question: 1. Search the internet for sample executive summaries. 2. From your research, describe 3 items that need to be in an executive summary and your reasons why. 3. Include in your critique how you would ensure that ...

Question consider this system of demand and supply for

Question: Consider this system of demand and supply for apples. C is the changes in the cost of input for production. For the moment, assume I=0 and C=0. Demand- Q=6-2P+I Supply- Q= 2P - C Suppose I=0 and now C=1 A) Does ...

Question suppose you work for a large retail chain in the

Question: Suppose you work for a large retail chain in the US that is considering expanding abroad. You are asked to determine whether the initial investment should be made in Mexico, Argentina, Brazil, or Chile. Explain ...

Question the demand for boobles can be written as q 11000

Question: The demand for boobles can be written as: Q = 11,000 - 8P. Calculate the price, quantity, total revenue and marginal revenue when the elasticity of demand = -2.2. Calculate the price, quantity, total revenue an ...

Question competency appraise the relationship between a

Question: Competency: Appraise the relationship between a heightened regulatory environment and corporate governance. Instructions: ABC Bank officials view compliance with regulations as a necessity for the very survival ...

Question a farm equipment manufacturer has already spent 3

Question: A farm equipment manufacturer has already spent $3 million in research and development to design a new model of tractor. To produce the tractors, the company will have to contract to rent a factory for a year a ...

Question you could write on any one of the following topics

Question: You could write on any one of the following topics or more than one topics. Please be reminded that while research could help for this essay, however, the most important thing is original idea. 1. Money is said ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As