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Novosadov [1.4K]
4 years ago
7

Suppose the top five firms in a market have market shares of 23%,12%,8%, 7% and 5% respectively. The remaining 45 firms in the m

arket each have a market share of 1%. Would the FTC be likely to approve a merger between the top two firms in this market?
Business
1 answer:
aniked [119]4 years ago
7 0

Answer: Yes, The FTC will approve the merger.

Explanation:

The Herfindahl-Hirschman Index (HHI) is the common measure of market concentration used to determine market competitiveness. The HHI is calculated by the squaring of the market share of every firm competing in the market and then adding the resulting numbers

HHI (before the merger)

= 23² + 12² + 8² + 7² + 5² + 45 × 1²

= 529 + 144 + 64 + 49 + 25 + 45

= 856

HHI (after the merger) = (23 + 12)²

8² + 7² + 5² + 45 × 1² = 1408

Here, the market is less concentrated and the HHI is still below 1500 after the merger. Therefore, FTC will approve this merger. The answer is Yes.

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A companies profit motive benifits consumers by ensuring the products and services they need are aviable at a high quality
Brilliant_brown [7]

Answer:

A. The invisible hand

Explanation:

CHECK THE COMPLETE QUESTION BELOW

A company's profit motive benefits consumers by ensuring the products and services they need are available at a high quality. what is this describing?

A. The invisible hand

B. Mixed economy

C. Laissez-faire

D. Private enterprise

The invisible hand can be regarded as a metaphor used in describing the unseen forces which is responsible for movement of the free market economy. With freedom of production as well as individual self-interest and consumption, we can fulfill best interest of society. This is a concept by Adam Smith. For instance, A company's profit motive benefits consumers by ensuring the products and services they need are available at a high quality, describe invisible hand.

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3 years ago
At the beginning of the year, a company predicts total overhead costs of $916,400. The company applies overhead using machine ho
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Answer: $17980

Explanation:

The amount of overhead that should be applied to Job 65A would be calculated as:

= Overhead cost × (Machine hours in January/Total machine hours)

= 916400 × (31/1580)

= $17980

8 0
3 years ago
Brainliest + Points!
Furkat [3]
It’s C I believe :) I hope this helps you
3 0
3 years ago
Read 2 more answers
Aslam wants to create multiple worksheet containing common formatting styles for his team members. Which file extension helps hi
svet-max [94.6K]

Answer:

1. Excel file extensions, using XLS or XLSX, help him to save worksheets.

2. (Files) help Aslam to create multiple worksheets with common styles.

3. He needs to save them with the (xls).

Explanation:

The file extension (also called the filename extension) is the ending of a file that identifies the type of file in an operating system, for example, Microsoft Windows.  The filename extension starts with a period, followed by one, two, three, or four characters, especially in Microsoft Windows.  The filename extension helps the computer to open the correct program whenever one wants to use the file.

4 0
3 years ago
The federal funds rate is A. the interest rate that the Federal Reserve charges for its loans to banks. B. the interest rate tha
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Answer:

C. the interest rate that banks charge each other for overnight loans.

Explanation:

The Fed requires commercial banks to keep some amount of deposits as reserves in their custody. If a bank does not have the  required amount for that day, they borrow from banks with excess funds. The duration of this arrangement is usually overnight.  The interest rate that applies is the fed funds rate.  

The Fed, which is a committee of the FOMC, determines the fed funds rate. The Fed uses the fed funds rate as a monetary policy tool. It adjusts it to drive the economy in the desired direction. Banks base their interest rates on the fed funds rate.

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4 years ago
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