Suppose Fiat Recently Entered Into An Agreement And Plan Of Merger

c. If the companies were allowed to merge with a turnover of $235,000 and $315,000, the resulting HHI would increase from $979 to $5,056. As the HHI merger increases the levels permitted by the guidelines (2500) and the increase in HHI by more than those permitted by the guidelines (200), the merger should be called into question. In the event of authorization, the concentration would increase the HHI by 10,000 [0.16 – 0.1) 2 – (0.16) 2 – (0.1) 2 ] – 320 points. This means that the postmergers would be HHI 3195 (2875 – 320). Given that postmerger HHI is greater than 2500 and the HHI modification is greater than 200, the merger is probably called into question. Suppose Fiat recently reached an agreement and a $4.3 billion merger plan with Case. Prior to the merger, the four-wheel-drive tractor market consisted of five companies. The market was very concentrated with a Herfindahl-Hirschman index of 2,765. Case s share in this market was 22 percent, while Fiat`s only 12 percent of the market. How much would the Herfindahl-Hirschman index increase? Do you think the Department of Justice would only challenge the merger on the basis of this information? Tell me. A: The minimal impact of production changes on a certain installation size is considered a short term…

A: Therefore, we can say that the health of the population differs from personal health b) because it focuses more on health… Q: What are the existences of monopolies? Should all monopolies be dissolved? Are all the big companies with… one. The HHI is calculated as follows: HHI – 10,000 [(235,000 USD / 1,230,000 USD) 2 – (680,000 USD/ b. The concentration rate of four companies is 100%. 1.230,000 USD) 2 – (315,000 USD / 1,230,000 USD) 2 ] – 4.077. A: Hey, thank you for the question. According to our policy, we can only answer 3 sub-parts per question…. B.

As P – (1 / (1 – L)) × MC, the marking factor (1 / (1 – 0.55)) is equal to 2.22. In other words, the price charged by the company is 2.22 times the marginal cost of manufacturing the product. Note that this increase indicates that price competition is not very strict and that the company has market power despite the large number of competitors. A: The demand shows the change in quantity due to the change in the property`s own price. The elasticity of demand for a representative company in the sector is -2.25. This is due to the fact that 0.4 – 0.9 / Ef, which means Ef -0.9 / 0.4 – -2.25. A: The economy can be defined as a study of how society effectively manages its meagre resources. The s… a. $111.11. To see this, solve the learning indexer formula to get P -1 /(1 – L)) × MC -(1/ (1 – 0.55)) × $50 -$111.11.

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