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.
Only take what you need because if you take too much you won't know what to do with it. Also if you only take what you need it will be easier to pay back later. win/win
Answer: 13.2%
Explanation:
Given data:
No of stores in the market = 5000
No. of store owners = 2000.
Allison charges = $8/month
Sam charges = $8/month.
Solution:
The market penetration rate would be calculated based on potential customers.
Using our general formula,
Market penetration=Numbers of customers who purchased Allison derived sales and Sam derived sales /Total potential population
Where,
Total potential population=1,500
•Allison derived sales = 129 customers
•Sam derived sales = 69 customers
•Numbers of customers who purchased Allison derived sales and Sam derived sales=129 customers+ 69 customers
•Numbers of customers who purchased Allison derived sales and Sam derived sales =198 customers
Let’s input this into our general formula.
Market penetration
= 169 customers/1,500
= 0.132*100
= 13.2%
The market penetration rate based on potential customers is 13.2%
The property addition that is being used is:
<em>The Addition Property</em>
Answer:
Fixed-ratio; variable-ratio
Explanation:
Paul’s telephoning is reinforced on a fixed-ratio schedule, whereas Michael’s is reinforced on a variable-ratio schedule.
A fixed ratio reinforcement schedule: They are a set number of responses that must occur before the behavior is rewarded. This means the number of responses to be exhibited by an individual in order to be rewarded is fixed.
Fixed-ratios are better used to optimize the quantity of output.
Variable ratio reinforcement schedule: The number of responses needed for a reward varies. This implies that the number of responses to be rewarded varies according to requirement. It is a partial reinforcement.
