- Assume the following hypothetical market shares-percent of companies in an oligopoly. Before and after the...

 

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- Assume the following hypothetical market shares-percent of companies in an oligopoly. Before and after the proposed merger (Penny's and K-Mart) (a) Calculate the Herfindahl index, before and after the proposed merger. Remember the Bench marks: from zero in competition to 10000 in monopoly. The FTC has a bench mark of 1700 or 1800. What is your conclusion? (b) Should the FTC allow the merger? What is the criteria ? (c) Would that merger be good for the consumers? Why or why not? (d) Who gains and who loses by allowing this merger? (e) Provide an Excel pie chart of the market shares before and after the merger. (f) Here comes Amazon, the largest retailer in the world. How is the market competition changing? WM 35 Target Sears Penny's kmart 25 15 15 10 - Assume the following hypothetical market shares-percent of companies in an oligopoly. Before and after the proposed merger (Penny's and K-Mart) (a) Calculate the Herfindahl index, before and after the proposed merger. Remember the Bench marks: from zero in competition to 10000 in monopoly. The FTC has a bench mark of 1700 or 1800. What is your conclusion? (b) Should the FTC allow the merger? What is the criteria ? (c) Would that merger be good for the consumers? Why or why not? (d) Who gains and who loses by allowing this merger? (e) Provide an Excel pie chart of the market shares before and after the merger. (f) Here comes Amazon, the largest retailer in the world. How is the market competition changing? WM 35 Target Sears Penny's kmart 25 15 15 10

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Answer a Prior to 2400 After 2700 b The risks are too great to combine the t... View the full answer