In the following mergers with a merger type and, for each, explain why Types: Horizontal, vertical, conglomerate 1. Dell computers buys Intel maker of computer chips 2. JetBllue airlines buys Spirit airlines 3. Vons grocery buys Ralphs grocery 4. Starbucks buys car dealership

In the following mergers with a merger type and, for each, explain why Types: Horizontal, vertical, conglomerate 1. Dell computers buys Intel maker of computer chips 2. JetBllue airlines buys Spirit airlines 3. Vons grocery buys Ralphs grocery 4. Starbucks buys car dealership

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 13P

See similar textbooks

Related questions

Q: 1. Smith can produce with or without a filter on his smokestack. Production without a filter results…

Q: If national income now rises by £22 billion and as a result, the consumption of domestically…

A: (1) As per question, change in national income is £22 billion and change in consumption will be £15…

Q: What are marketing, operations, finance, and human resource of Alibaba Group: The Rise of a Platform…

A: Alibaba, which began as a tool to assist small Chinese businesses with export transactions in 1999,…

Q: Economics Q8 Suppose, on a certain day in February, a speculator observes the following prices in…

A: Foreign exchange Foreign exchange is the market where the currency of one country is exchanged with…

Q: How open market operations check the inflation? Please explain briefly ( 200 words)

A: Open market operation is monetary policy which is used by reserve banks for regulating the inflation…

Q: From the standpoint of any given EU member country what are the potential advantages of adopting the…

A: Advantages The euro has several advantages, including facilitating trade, boosting investment, and…

Q: 15. Assume that an entrepreneur's short-run total cost function is C = q3 – 10q? + 17q + 66.…

A: Solution:- 1st part:-

Q: In Figure 17.3, the government may optimally regulate the paper market by taxing output. Given that…

A: Cost of production Manufacturing cost or the cost which is incurred by the firm and industry at the…

Q: Anumber of stores ofter fim developing as a service to their customers Suppose that each store…

A: Long run equilibrium refers to the equilibrium that is achieved over a long period .The period could…

Q: 28.The following information is available for a company that operates in a perfectly competitive…

A: Here, the given table shows the cost and output information of a firm in the perfectly competitive…

Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…

A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…

Q: You observe that the inflation rate in the United States is 3.6 percent per year and that T- bills…

A: Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate…

Q: .. Consider a market that consists of 50 consumers, i = 1, .., 50, each with the following quasi-…

A: Since the question you have posted consists of multiple parts, we will answer the first three…

Q: Donald Company, a manufacturing company based in San Juan City, Philippines, purchased raw materials…

A: When foreign goods are bought and sold in foreign currency, there is often a foreign exchange risk…

Q: When considering the situation of a large financial firm that might be bailed out by the taxpayers,…

A: The principal-agent problem is contention in needs between the proprietor of a resource and the…

Q: A firm operating in a perfectly competitive market cannot increase its profit. Which of the…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: a. One finding of the study is that the theaters attract traffic, which adversely affects the…

A: a) Because the social cost is larger than the private cost, the increased traffic is a negative…

Q: Fifteen years ago, the town of Easton decided to increase its annual spending on education so that…

A: 7)a) Difference in difference approach is used to determine the difference between the controlled…

Q: This year, FCF Inc, has earnings before interest and taxes of $10,440,000, depreciation expenses of…

A: Introduction Free cash flow will help the company for her operating decisions. When a company…

Q: Identify the stages of EU economic integration, and how Greece needs to escape its existing…

A: Economic integration is divided into seven stages, according to experts.

Q: 1. A tax imposed for the general purposes of the government to raise revenue for the local area…

A: tax collection, the burden of mandatory tolls on people or elements by state-run administrations.…

Q: On Juan's twenty-sixth birthday, he invested $7,500 in a retirement account. Each year thereafter,…

Q: Which of the following describes Keynes' position in fighting recessions? O A. Keynes emphasized…

A: According to Keynesian macroeconomics, price and wages are inflexible. Any change in the market…

Q: Martin commutes 4 hours every weekday in his combustion-engine vehicle to his job in downtown…

A: Here, it is given that Martin commuted 4 hours in his combustion-engine vehicle on weekdays to reach…

Q: If the Federal Reserve Bank intends to act on monetary policy in the nea future, it will most likely…

A: When talking about monetary policy, Federal Reserve is the managing authority in the United States…

Q: A P1,000 , 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 2022. It is…

A: Following are the given values: The annual yield on the bonds = 4% Redemption value = 110%

Q: 1. Due to the creation of the multiverse, two parallel universes, Universe 30.13 and Universe 30.14,…

A: Gini index is the area between the uniform equality line and the Lorrenz curve . Area under…

Q: Use the map to answer the following question. Federal Reserve Districts BOTON 12 New Yorr Cco S…

A: In the United States of America, the central banking system is also called the Federal Reserve…

Q: Identify the barriers that may prevent a common price equilibrium occurring for goods and services…

A: These are trade limitations enforced by the government, mostly on imports. Tariffs and import quotas…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000q-…

A: LMC is the marginal cost which is the change in total cost by producing an additional unit of output…

Q: Our very existence makes environmental problems inevitable. Environmental problems are not new.…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: 3) Suppose a competitive firm sells its goods at the market equilibrium price of $100. The firm's…

A: A competitive firm is a price taker as there are many firms producing identical goods

Q: Let the consumer's utility function be f(q1,92,q3) = 919293, and her budget constraint y = P191 +…

A: given that, consumer utility function f(q1, q2, q3)= q1 q2 q3 budget constraint y= p1q1+p2q2+p3q3

Q: Juan is 25 years old today. A year from now (i.e., on his 26th birthday) he will deposit $7,000 in a…

A: Compound interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: Suppose the market price of a good is $20 and TC=0.5Q2. A. What Q should a profit maximizing…

A: A competitive firm is a price taker as there are large number of firms selling identical goods

Q: As a part of their benefits program, Lonny's Grocery Store offers its employees a PTO package that…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Industrialization should start from a sound agricultural base. Why? What could be a contribution of…

A: Industrialization should begin with a strong agricultural foundation since it allows fewer farmers…

Q: In the analysis of the optimal level of a public good, suppose that each person's utility function…

A: Given information Utility function is quasi linear U=Ui(G)+Pi G is the public good Pi= private good…

Q: According to Hickel how do rich countries de-develop? And the effects on it to the countries

A: *Answer:

Q: Two mutually exculsive alternative are being considered for the environmental protection equipment…

A: It is given that : AW (A): Investment - $ 20,000 Annual expense - $5,500 Life – 5 yrs Salvage value…

Q: tudentFunctions/Interface/acellus_engine.html?ClassID=186172877 VI The Spending Multiplier is found…

A: Marginal propensity to consume is the ratio of change in consumption to the change in income. It…

Q: 11) what is the equilibrium output and price?

A: Equilibrium is the point where the objectives of all producers and the consumers are satisfied and…

Q: Rich Uncle Pennybags is the only seller of board games in Atlantic City, New Jersey. The inverse…

A: "In a perfectly price discrimination, the monopolist produce optimal quantity that is pareto…

Q: The debt ceiling disputes that arise in the U.S. Congress over whether to raise the ceiling to allow…

A: The debt ceiling is the most extreme measure of cash that the United States can acquire aggregately…

Q: The demand function for a commodity is given by D(z) = 2000 - 0.1z- 1.01z2. Find the consumer…

Q: When Star Wars Episode III: Revenge of the Sith opened at 12:01 a.m., Thursday, May 19, 2005, the…

A: Externality refers to the cost or benefit incurred by a third party which is not involved in the…

Q: What are the benefits and drawbacks of their high road approach to post acquisition integration in…

A: A created economy is a district, ordinarily a country, with an overflow of riches and assets…

Q: ENDING POLICE VIOLENCE What is the impact of the problem and future consequences?  In what ways can…

A: Racism is discrimination based on color seen in the American economy. Before the revolution, black…

Q: Economics Find an example where an International Risk is realized. Describe what happened, how the…

A: The danger of losing money due to variables that influence a whole market or asset class is known as…

Q: A start-up mobile phone manufacturer who produces mother boards has fixed costs of $320,000 per year…

A: Variable costs will be costs that change as the amount of the great or administration that a…

Concept explainers

Financial Statements

Financial statements (or financial reports) are the formal records of the financial activities that are undertaken by a firm. They are convenient instruments used for analyzing a company’s financial position and performance. Financial ratios are created with the help of the numerical values that are derived from the financial statements. They give meaningful information about the financial performance of the company.

Question

3. In the following mergers with a merger type and, for each, explain why

Types: Horizontal, vertical, conglomerate

1. Dell computers buys Intel maker of computer chips

2. JetBllue airlines buys Spirit airlines

3. Vons grocery buys Ralphs grocery

4. Starbucks buys car dealership

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

5. If Amazon were to purchase UPS, this would be an example of a: A. Horizontal mergerB. Vertical mergerC. Conglomerate mergerD. Parallel merger
What is the difference between a vertical merger and a horizontal merger? Give an example of each category.
8 me remaining: 00:09:22 Economics An industry consists of three firms with sales of $25, $45, and $55.a. Calculate the Herfindahl-Hirschman index (HHI).Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $25 and $45?
3.If two construction companies merge, this is called a ________ merger, whereas if a bakery merges with a flour mill, this is called a ________ merger. a) horizontal, vertical b) conglomerate, horizontal c) natural, vertical d) conglomerate, vertical
In your experience and observation of the general market, can you identify two companies locally or nationally you can associate with any of these market structures (Perfect competition market structure, monopoly market structure, monopolistic-competition market structure, oligopoly market structure)? not copy paste
35. Use Table 11.5 to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a concentrated market or not? GM 19% Ford 17% Toyota 14% Chrysler 11% Table 11.5 Global Auto Manufacturers with Top Four U.S. Market Share, June 2013 (Source: http://www.zacks.com/commentary/27690/auto- industry-stock-outlook-june-2013)
8.In 2019, competition authorities threw out a merger of Asda and Sainsbury’s. What type of growth would the merger of Asda and Sainsbury’s have represented? a) Horizontal expansion b) Horizontal integration c) Conglomerate merger d) Vertical integration e) Horizontal alliance
Carrot Computers and its competitors purchase touch screens for their tablet computers from several suppliers. The slx makers of touch screens have market shares of, respectively, 19 percent, 18 percent, 12 percent, 18 percent, 21 percent, and 12 percent. Instructions: Enter your answers as a whole number. a. What is the Herfindahl index for the touch screen manufacturing industry? ok b. By how much would a proposed merger between the two smallest touch screen makers increase the Herfindahl index? rint Is the government likely to challenge that proposed merger? brences (Click to select) : c. If Carrot Computers horizontally merges with its competitor Blueberry Handhelds, by how much would the Herfindahl index change for the touch screen industry?
Market Share % 25 8 5 4 4 2.5 2 1.5 Grocery Store Walmart Kroger Albertsons Ahold Delhaize Publix H-E-B Aldi Group Meijer 48 Independent Grocers @ 1% each Use the above information to answer the following questions. What is the four-firm concentration ratio before the merger? What is the market structure? (Click to select) What is the industry HHI before the merger? Kroger and Albertsons propose a merger. What is the industry HHI after the merger?
Assume that Starbucks and Gloria Jeans are offering coffees with slightly different taste and acidity. Assume that Starbucks and Gloria Jeans decided to merge. What type of merger will that be? Describe briefly using words. Will a merger be beneficial for the firms? Discuss briefly using words. DO NOT draw graphs. DO NOT do any calculations
Read your textbook (Chapters 1-7) and use seven peer reviewed publications and write an APA formatted paper of minimum five (5) pages about the following: Explain the Five Forces Framework and Industry Profitability of Michel Porter. Describe the four market structures of Perfect Competition, Monopoly, Monopolistic Competition, and Oligopoly. Analyze the relation between the five forces and different market structures. Apply your understanding in the evolution of the market in the computer industry (Page 223).
Explain why a large firm like General Mills might use nationalaccount selling to strengthen its relationship with a majorsupermarket chain