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complete chart ram producing firms market share % HHI index value HHI Index crucial + Geil Merger HHI index PQI + OCZ +PNY Merger Kingston

complete chart

ram producing firms market share % HHI index value

HHI Index

crucial + Geil

Merger

HHI index

PQI + OCZ +PNY Merger

Kingston 20


corsair 18


crucial 15


geil 14


PQI 10


OCZ 8


PNY 6


Micron 5


others 4


total 100 HHI = HHI = HHI =





a. What is the value of HHI Index of this market? Suppport the answer with calculations in table's third column

b. If Crucial wants to merge with Geil, then will the US Justice department challenge this merger if its guidelines state that HHI index must be equal to 1800 for this industry to be competitive? Will US Justice Department challenge the merge of PQI, OCZ and PNY underssame guidelines? Support the answers with calculations in tables's fourth and fifth column.

c. Would Corsair initiate a price reduction per unit of its output if it is 90% sure that the rivals will do the same, which could result in a potential $150,000 loss or in a potential profit of $1 million of the price cut is not matched? Support the answer with calculations.

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