Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. the following table shows the market shares during

The following table shows the market shares during the first three months of 2017 for companies...

50.1K

Verified Solution

Question

Economics

  1. The following table shows the market shares during the firstthree months of 2017 for companies in the US personal computer (PC)market:

Company

Market Share

Lenovo

20%

Hewlett-Packard

20%

Dell

15%

ASUS

7%

Apple

7%

ACER

6%

Others

25%

  1. Treating “Others” as a single firm, how would the “Agencies”characterize the concentration level in this market? How does youranswer change if “Others” consists of 5 firms each with 5% marketshare? Explain/Show Work. USE HHI

  1. Treating “Others” as a single firm, predict whether theagencies would challenge a merger between Dell and Apple. How doesyour answer change (if at all) if you treat “Others” as 5 firmseach with 5% market share? Explain/Show Work.USE HHI
  1. This time, suppose Lenovo and Hewlett-Packard were to merge.Treating “Others” as a single firm, would this merger likely beblocked? If so, is it presumptively illegal? Does your answerchange if you treat “Others” as 5 firms each with 5% market share?Explain/Show Work. USE HHI

Answer & Explanation Solved by verified expert
4.2 Ratings (727 Votes)
The Herfindahl Hirschman Index HHI is a common measure of level of concentration in the market sector This shows if the market is leaning towards few powerful players or many equal players Mathematically it is calculated by summing up the squares of market share percentages To much concentration of power may lead to monopolies and loss in consumer welfare The Justice Department in US uses HHI to scrutinise mergers It segments markets broadly into 3 types i 0 1500 Low concentration ii 1500 2500 Moderate Concentration iii 2500 10000 High Concentration In general if mergers increase HHI by 100 200 they are scrutinised    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The accounting records of Timberline Lodge are maintained on the basis of a fiscal year ending...

Accounting
Q

The depth of field increases with the magnification True False

Biology
Q

Given the following table of a function identify the type of function represented and find...

Algebra
Q

Font P DO Accessibility: Investigate S Paragraph 1 2 Interest Accounting and legal fees Advertising...

Accounting
Q

Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...

Accounting
Q

(c) Discuss whether the independent reviewer can express a qualified opinion if the results of...

Accounting
Q

M Stockholders' Equity Transactions and balance Sheet Presentation Tony Corporation was ortored on Apr with...

Accounting
Q

Understanding and meaning of the following statements: a. statement of financial performance b....

Accounting
Q

Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell...

Accounting
Q

Exercise 2-6 Pritano Company acquired all the net assets of Succo Company on December 31,...

Accounting
Q

HI, I NEED HELP WITH THIS BOTH WAY DIRECT AND INDIRECT. THANKS Part...

Accounting
Q

Moore Manufacturing Inc., a profitable company, sells a product for $10 per unit. The variable...

Accounting