“In the United States more than 50 firms produce textiles, but only 3 produce automobiles. This statistic shows that government antimonopoly policy has been applied more harshly to the textile industry than to the automobile industry.” Provide an alternative explanation for the difference in the number of firms in the two industries.
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- “In the United States more than 50 firms produce textiles, but only 3 produce automobiles. This statistic shows that government antimonopoly policy has been applied more harshly to the textile industry than to the automobile industry.” Provide an alternative explanation for the difference in the number of firms in the two industries.
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- Doctors and plumbers. Consider the structure of geographically isolated mar- kets in the US (small towns) in the following businesses: doctors, dentists, plumbers. It can be shown that the minimum town size that justifies the entry of a second doctor is approximately 3.96 times the required size for the first doctor to enter. For plumbers, the number is 2.12. How can these numbers be interpreted?In a certain region, there are four major healthcare providers: A HealthCare, B CarePlus, C MedWell, and D LifeCare. The market shares of these providers in terms of patient visits are as follows: A HealthCare: 35% B CarePlus: 25% C MedWell: 20% D LifeCare: 20% Calculate the Herfindahl-Hirschman Index (HHI) for the healthcare provider market in this region. Is this market considered concentrated or competitive according to the HHI interpretation?Business group Business Unity South Africa (BUSA) has written to Transport minister Fikile Mbalula requesting he makes changes to South Africa’s regulations around the transportation of logistics containers. According to BUSA, Regulation 224 (b) of the National Road Traffic Act currently prohibits the transportation of high cube containers on South African roads. “High cube containers constitute the overwhelming majority of containers currently manufactured and transported internationally – including in neighbouring states,” it said. “However, the combined height of a vehicle transporting a high cube container is currently 4.6 metres – 300mm above the legal limit.” Despite several years of industry engaging the Department of Transport on the matter, as well as moratoriums being issued, no progress has yet been forthcoming on fundamentally resolving the issue, the group said. “This regulatory anomaly puts South Africa’s trade and logistics regime out of step with international and…
- Business group Business Unity South Africa (BUSA) has written to Transport minister Fikile Mbalula requesting he makes changes to South Africa’s regulations around the transportation of logistics containers. According to BUSA, Regulation 224 (b) of the National Road Traffic Act currently prohibits the transportation of high cube containers on South African roads. “High cube containers constitute the overwhelming majority of containers currently manufactured and transported internationally – including in neighbouring states,” it said. “However, the combined height of a vehicle transporting a high cube container is currently 4.6 metres – 300mm above the legal limit.” Despite several years of industry engaging the Department of Transport on the matter, as well as moratoriums being issued, no progress has yet been forthcoming on fundamentally resolving the issue, the group said. “This regulatory anomaly puts South Africa’s trade and logistics regime out of step with international and…If the firm is forced to charge the same price in both market, what would be the total number of cars they sell in both markets? Please provide a numerical answer in millions of cars. For example, if the answer is 3,524,000 (3 million and 524 thousand cars), put 3.524 in the answer field.9. The kinked demand curve Wilke is a manufacturer in the oligopolistically competitive market for footballs. Two other manufacturers, Rawlding and Spaldon, compete with Wilke for football consumers. Wilke faces the kinked demand curve for footballs depicted on the graph. Initially, Wilke charges $30 per football, producing and selling 7 million footballs per year. PRICE (DOLLARS PER BALL) 36 35 34 33 32 31 30 29 28 27 28 5 в 7 8 FOOTBALLS (Millions of balls) 9 10 ? As an oligopolist, Wilke is a price maker. If Wilke raises the price of its football from $30 to $32 per ball, the quantity of Wilke footballs demanded million footballs per year. If Wilke reduces the price of its football from $30 to $28 per ball, the quantity of footballs demanded million footballs per year. (Hint: Mouse over the points on the graph to see their coordinates.) by by If Wilke lowers the price of its football below $30, the kinked demand curve model suggests that Rawlding and Spaldon will respond by
- The smartphone market has been dominated by Apple, but recently the Droid has been able to leverage Google's information services into market gains, while Blackberry, known for its secure business-oriented network, has attempted to become more attractive with a "friendlier" interface. At the same time, a number of less capable fringe firms are emerging. Suppose an economist analyzes this industry as follows: ECONOMIST: The market had been a near Apple monopoly. Profits of this monopoly attracted entry by Droid- and Blackberry- based phones, increasing rivalry between firms in the industry. The emergence of smaller fringe firms suggests that entry barriers have fallen substantially, so competition has or will soon become fiercer. True or False: This analysis is consistent with the industrial organization (IO) view. True FalseThe smartphone market has been dominated by Apple, but recently the Droid has been able to leverage Google's information services into market gains, while Blackberry, known for its secure business-oriented network, has attempted to become more attractive with a “friendlier” interface. At the same time, a number of less capable fringe firms are emerging. Suppose an economist analyzes this industry as follows: ECONOMIST: The market had been a near Apple monopoly. Profits of this monopoly attracted entry by Droid- and Blackberry-based phones, increasing rivalry between firms in the industry. The emergence of smaller fringe firms suggests that entry barriers have fallen substantially, so competition has or will soon become fiercer. True or False: This analysis is consistent with the industrial organization (IO) view.Market Share (% Suppose that the table shows market share data for all of the Restaurant sushi restaurants in town Ahi Sushi 45 25 Shizuoka Calculate the Herfindahl-Hirschman index (HHI) for the local sushi market. Yoshinos 15 Ono Sushi 10 Arigato НHI:
- Draw the graph. If the monopoly is a price-discriminating monopoly charging some customers P1= $950 and other customers P2=$400, then: At the price P1= $950, the monopoly will sell a quantity Q1 = ______ At the price P2= $400, the monopoly will sell a quantity Q2 = ______. (Obs: calculation required here!) Total quantity sold at both prices is Q3 = Q1 + Q2 = ___________. The profit earned from selling the quantity Q1 at P1 is Profit1 = ____________________(identify the area on the graph and calculate it). The profit earned from selling the quantity Q2 at P2 is Profit2= ____________________(identify the area on the graph and calculate it). The total profit earned by the price discriminating monopolist is Profit = Profit1 + Profit2 = _______.Luxottica owns 11 glasses and sunglasses companies. They also have deals to make glasses for at least 20 other brands. In 2017 Luxottica joined with Essilor, another major glasses company. (optional; the Adam ruins everything episode about Luxottica) The new company, EssilorLuxottica, is worth $81 billion and made $11 billion in sales in 2019. It is estimated they control at least 80% of the market for name-brand glasses. EssilorLuxottica makes the glasses and also owns the major retail sellers of glasses including LensCrafters and Sunglass Hut. In the case of LensCrafters, they own the largest chain of eye doctors that prescribe their products. Furthermore, they also own some of the major optical (eye) insurance companies. Effectively the only way to sell glasses in the USA is through retail stores owned by EssilorLuxottica. When Oakley became a popular brand of sunglasses Luxottica stopped selling them in their stores. Oakley could not sell their glasses and became worth so little as…According to your answers, one part of Step 3 - Proft under discrimination says: "Therefore, in the interval (0, 50), the elasticity would be- ......????". Please complete this part or any other part that complements this step.Thanks