The appointment questions will crave you to do some calculations and additionally administer the concepts from the module. **** For computational problems, accomplish abiding to appearance your assignment and explain your steps.****
1. For this botheration use the Herfindahl Index to compute bazaar concentration:
a. Accept Apple has 45% of the U.S. bazaar allotment for smartphones, followed by Samsung with 30%, LG with 9%, Motorola with 8%, HTC with 6%, and Nokia with 2%. What is the Herfindahl Index for the smartphone industry based on these numbers? Based on the Herfindahl Index, do you anticipate the government would be accommodating to accept a alliance amid Apple and Samsung?
b. Now accept Nokia and Motorola appear out with a new smartphone that takes abroad a huge block of bazaar allotment from Apple and Samsung. The new bazaar shares are 25% for Apple, 20% for Samsung, 20% for Motorola, 20% for Nokia, 10% for LG, and 5% for HTC.
2. Use what you abstruse about absolute competition, monopoly, and cartel to acknowledgment these questions:
a. In the table beneath is the abundance produced, the price, the anchored costs, and capricious costs for a altogether aggressive close that faces a connected amount of $150 for its artefact behindhand of the abundance it sells. Use the advice in the aboriginal four columns to account the cardinal for the aftermost four columns. At what abundance should they aftermath based on what you acquisition with your results?
b. How do you anticipate your acknowledgment ability change if it became a monopolist with all of its competitors abrogation the market? Or if it became an cartel with alone one or two competitors?
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