5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C,...

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Economics

5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E. Two companies in Town A apply for a merger. The current price in the market is $200 (the per unit cost for all suppliers is $180). There are other suppliers located in town B, C, D, E, F, G, H and I. The distances from town A are as follows: Town B: 20 Town C: 28 Town D: 31 Town E: 36 Town F: 45 Town G: 58 Town H: 65 Town I: 69 Transportation cost of one unit of the product is $0.3 per kilometre. The competition authority applies a SSNIP to define the market for this merger application. Which of the following statements is correct? There may be more than one correct statement. None of the given answers. In a 10% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F, G. In a 10% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F, G, H, I. In a 5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F. In a 5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D. In a 10% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F, G, H. In a 5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E.

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