Information about mergers

Reference no: EM1366740

1. How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market? Explain.

2. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm's product is $140.

Output FC VC TC TR Profit/Loss

0 $90 $0 _ _ _
1 90 90 _ _ _
2 90 170 _ _ _
3 90 290 _ _ _
4 90 430 _ _ _
5 90 590 _ _ _
6 90 770 _ _ _

3. How does the demand curve faced by a monopoly differ from the demand curve faced by a perfectly competitive firm? Explain.

4. The following table provides market share information about the soft-drink industry.

Company Market Share
Coca-Cola 37%
Pepsi-Co 35
Cadbury Schweppers 17
Other 11

Do you think the Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companies listed? Explain.

Reference no: EM1366740

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