Chapter 7 Homework AssignmentsQ12 Forey, Inc., competes against many other firms in a highly competitiveindus- try. Over the last decade, several firms have entered this industryand, as a consequence, Forey is earning a return on investment thatroughly equals the interest rate. Furthermore, the four-firmconcentration ratio and the Herfindahl- Hirschman index are both quitesmall, but the Rothschild index is signifi- cantly greater than zero. Basedon this information, which market structure best characterizes theindustry in which Forey competes? Explain. Q13 Firms like Papa John’s, Domino’s, and Pizza Hut sell pizza and otherproducts that are differentiated in nature. While numerous pizza chainsexist in most locations, the differentiated nature of these firms’ productspermits them to charge prices above marginal cost. Given theseobservations, is the pizzaindustry most likely a monopoly, perfectly competitive, monopolisticallycom- petitive, or an oligopoly industry? Use the causal view of structure,conduct, and performance to explain the role of differentiation in themarket for pizza. Then apply the feedback critique to the role ofdifferentiation in the industry. Q15 Nationwide Bank has approached Hometown Bank with a proposal tomerge.The following table lists the sales of the banks in the area. Use thisinformation to calculate the four-firm concentration ratio and theHerfindahl-Hirschman index. Based on the FTC and DOJ HorizontalMerger Guidelines, do you think the Justice Department is likely tochallenge the proposed merger?Sales Bank Name (in millions)MegaBank $1,100 City Bank 950 Nationwide Bank 845 Atlantic Savings785 Bulk Bank 665 Metropolitan Bank 480 American Bank 310Hometown Bank 260 Urban Bank 140 Q17 em- bles perfect competition? Which industry most closely resembles monopoly? You will need to re-enter the data on the table above into cells before calculating. AgricultureConstructionDurable manufacturingNondurable manufacturingTransportationCommunication and utilitiesWholesale tradeRetail tradeFinanceServices Own Price Elasticity ofMarket Demand-1.8-1.0-1.4-1.3-1.0-1.2-1.5-1.2-0.1-1.2 Own Price Elasticityof Demand forRepresentative Firm’sProductRothschild Index-96.20.019-5.20.192-3.50.400-3.40.382-1.90.526-1.80.667-1.60.938-1.80.667-5.50.018-26.40.045
We offer the best custom paper writing services. We have done this question before, we can also do it for you.
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How It Works
- Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.