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Carrot Comuputers and its competitors purchase touch screens for their handheld computers from several suppliers. The six makers of touch screens have market shares of, respectively, 19 percent, 18 percent, 14 percent, 16 percent, 20 percent, and 13 percent.
A. What is the Herfindahl index for the touch scren manufacturing industry?
B.By how much would a proposed merger between the two smallest touch screen makers increase the Herfindahl index? Would the government be likely to challenge that proposed merger?
C. If Carrot Computers horizontally merges with its competitor Blueberry Handhelds, by how much would the Herfindahl index change for the touc screen industry
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Mitchell Electronics produces a home video game that has become very popular with children. If the threat is not credible, what changes in the game would be necessary to make the threat credible.
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The table above demonstrate the prices and quantities of 2-goods produced in a country in 2006 and 2007. These are the only goods produced in the country.
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