Antitrust Authorities at the Federal Trade Commission Are Reviewing Your Companies Recent Merger with a Rival Firm...

Antitrust authorities at the Federal Trade discuss are reviewing your companies recent conjugation with a rival unshakablely. The FTC is annoying that the merger of two rival firms in the same cover will increase foodstuff place. A hearing is pattern for your company to present arguments that your firm has not change order its grocery store strength through this merger. Can you do this? How? What proof strength you represent to the hearing? Market position is draw by doubting doubting Thomas and Maurice (2011) as the ability of all set climb firms to raise price without losing all sales, which causes the price-setting firms claim to be downward- pitch (p. 453). In order to argue that my firm has not increased its market power through the merger and presently overshadows little firms in the market, I would argue that due to the merger the firm is now able to produce a relief pitcher that production does not currently exist. I would argue that merchand ising in a market under conditions of monopolistic tilt my firm is now able to produce a slenderly secernate product than what is currently being offered on the market which may al modest for some, but not much, market power. Thomas and Maurice fight that a monopolistic competition consists of a too large fleck of firms selling a differentiated product with low barriers to doorway (2011, p. 455).

Furthermore, the score to which a firm possesses market power is mutually related to the expansibleity of demand and the more elastic the firms demand, the slight its degree of market power (2011, p. 457); therefore, the greater the frame of closing curtain substitutes consumers can f ind, the larger the elasticity of demand and! thus the small the firms market power. Basing my argument on the degree of market power my firm holds, I would take away to bring evidence of the particular proposition degree. To do so, I would need to measure the degree of power using the Lerner index which Thomas and Maurice (2011) define as a ratio that measures the proportionate sum up by which price exceeds marginal...If you compliments to get a rise essay, order it on our website: OrderEssay.net

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