The following are the approximate U.S. market shares of different brands of soft drinks: Coke45%, Pepsi30%, Dr.

Question:

The following are the approximate U.S. market shares of different brands of soft drinks: Coke—45%, Pepsi—30%, Dr. Pepper/7-Up—15%, all other brands—10%.

a. Compute the Herfindahl for the soft-drink market. Suppose that Pepsi acquired Dr. Pepper/7-Up. Compute the post-merger Herfindahl. What assumptions did you make?

b. Federal antitrust agencies would be concerned to see a Herfindahl increase of the magnitude you computed in (a), and might challenge the merger. Pepsi could respond by defining the market as something other than soft drinks. What market definition might it propose? Why would this change the Herfindahl?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

Answered By

Atuga Nichasius

I am a Highly skilled Online Tutor has a Bachelor’s Degree in Engineering as well as seven years of experience tutoring students in high school, bachelors and post graduate levels. I have a solid understanding of all learning styles as well as using asynchronous online platforms for tutoring needs. I individualise tutoring for students according to content tutoring needs assessments. My strengths include good understanding of all teaching methods and learning styles and I am able to convey material to students in an easy to understand manner. I can also assists students with homework questions and test preparation strategies and I am able to help students in math, gre, business , and statistics I consider myself to have excellent interpersonal and assessment skills with strong teaching presentation verbal and written communication I love tutoring. I love doing it. I find it intrinsically satisfying to see the light come on in a student's eyes. My first math lesson that I taught was when I was 5. My neighbor, still in diapers, kept skipping 4 when counting from 1 to 10. I worked with him until he could get all 10 numbers in a row, and match them up with his fingers. My students drastically improve under my tutelage, generally seeing a two grade level improvement (F to C, C to A, for example), and all of them get a much clearer understanding! I am committed to helping my students get the top grades no matter the cost. I will take extra hours with you, repeat myself a thousand times if I have to and guide you to the best of my ability until you understand the concept that I'm teaching you.

5.00+ 2+ Reviews 10+ Question Solved

Related Book For book-img-for-question