What is the value of hhi index of this market

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Reference no: EM132274842

Firms market share % HHI<2100 HHI aftrer Lg &HTC merge rHHI after huawei & nokia merger

samsung30 30 _____ _________ __________

apple24 24 _______ __________ _________

huawei16 16 ______ __________ _____________

LG15 15 ____________ __________ ___________

yota5 5 ___________ ___________ _________

htc4 4 ________ __________ __________

motorola3 3 ___________ ____________ _____________

nokia2 2 _________ ____________ ___________

others1 1 __________ ____________ ____________

total 100 ____________ ____________ ______________

A.What is the value of HHI Index of this market? Support the answer with calculations.

B. If LG wants to merge with HTC, then will US Justice Department block this merger if its guidelines state that HHI Index must be equal to 2100 for this industry to be competitive? Support the answer with calculations.

C. Will US Justice Department challenge the merger of Huawei and Nokia under the same guidelines? Support the answer with calculations.

D. Would Apple initiate a price reduction for its phones if it is 95% sure that the rivals will do the same, which could result in a potential $75,000 loss or in potential profit of $1.2 million if the price cut is not matched? Support the answer with calculations.

Reference no: EM132274842

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