Which merger would the Antitrust Division challenge? Why?

Suppose an industry is composed of eight firms with the following market shares: A 30% E 8% B 25 F 5 C 15 G 4 D 10 H 3 Based on the (revised 1997) merger guidelines, would the Anitrust Division likely challenge a proposed merger between a. Firms C and D (assume the combined mar...

The gypsum board industry

It was observed in Chapter 12 that collusion among oligopolists can be facilitated in part by information sharing. As a consequence, the sharing of price information among rival oligopolists can violate U.S. antitrust laws. You can see how the U.S. Supreme Court has interpreted antitrust law as it p...

Price ceiling

Explain the difference between a price floor and a price ceiling. Provide a situation in which a price ceiling may be used. What are the effects of this price control on the equilibrium price and quantity?

types of transnational crime and organized groups

What are some of the most important examples of types of transnational crime and organized groups that commit these crimes? How have the United States and other countries tried to combat transnational crime, and with what results? Why is transnational crime so difficult to eradicate? Construct a 250...

Price Gouging during Hurricane Reconstruction

Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than expected for the reconstruction to take place. A possible explanation for this is said to be due to a government-imposed restriction on price gouging during the reconstruction period. Ex...

Breaking up Microsoft and the impact on competition

In the year 2000 a federal judge ordered that Microsoft be split into two separate companies because it had violated the antitrust laws of the United States. Some argue that the antitrust law are justified on grounds of the efficiency of competition. that is, breaking up a monopoly should result in ...

Experiment, Pareto Chart

Question2: The test matrix and test data below show the results from a full factorial experiment on the effect of 3 variables, roughness (R), pipe diameter (D), and viscosity (V), on pressure drop in a pipe. Perform a Pareto analysis on the data to Determine the relative importance of the facto...

Negligence as determined by the marginal Hand Rule

Consider a barge owner who is deciding whether to post an attendant on his barge to make sure that it remains properly moored to the pier. The following table gives the total cost of hiring the attendant,the probability of an accident, and the ...xed cost of an accident: ...

Patents

Patents have been defended by some on the grounds that they stimulate inventive activity. Others have argued for changes in current patent laws because: a. resources are misallocated by the grant of a patent monopoly b. patents may not be necessary to encourage inventive activity c...

Marginal Probability Precaution

When an increase in precaution will reduce liability from 10% to 4%, for example, how do you compute that? If the damages were $500,000 would it be 6% of $500,000?

Rational and irrational behavior

An economics professor went out to dinner one night. and observed one student drinking alot. The next day, a major test was scheduled to be taken. The professor's husband also a teacher, saw the student acting irrational. Under what conditions is the behavior irrational according to the properties o...

I would like a detailed answer. Thank you for the help.

In light principle-agent theory, why might dentists and attorneys be required to subscribe to professional codes of ethics that prevent (or at least limit) their ability to sell unneeded services to their clients? Why do we not see similar codes of ethics for automobile mechanics?

Lighthouse ownership

When you see a lighthouse and a child asks who made this (or had it made) how will you explain? Why?