teblemset 4 crt upon — Hin On + scone 1ODAFBH as 42 / 2 ; Roblum ). a). HHI= 1000 A & = 10000( 0 25" 0.204 0.18 't Ot = 10 000C 9.0695 40.0464 + 0.0924 t 0.0144 0.0144 + 0.0124 ) = 49 Wore of He Lagest few Jo 297, aotork Nh tess Oe WPL tl wn PEE HETs pq00€ 042% 0.297 012o1 Fo?) © DPD Trorose im Herfindlal Inder> 2342-1842 = doo Pegorching to M SE HAE Oly se giclives, mergers wible « HAL 7 1300 with Syoease will surely O be, investig ed thus, since, nit before te monger 1S. (842. 1800 aun He imoréase af AN te the merger J iS 400 2/lo0 , we cannot conclly Weak foe monsee S Safe onl thik banded on basis of merger gusiehines, the merper reek fo be. imestiont bole 2 p eocial loss < § gain Rem, proht BACR-BICL 4) € CMC,-MCy 4, > MOH prenge a ( Ho we tus, orginal cost has to decrease at least by 5b = 0,06%6wo) iP the produck, was = AO“ONRDS = PSS ving Sock of 4 2% egy = HOON > BA Aber Nhe mene Yadttg? “O-OAKO = 28 Before. the merger Sociol costs: x Cqc2® -gcHo)) x C4028) = YC BG B-D4I® 1D = 03% aon NBAAUMA ayayiae PVA Benefit = Cuo-22)qe4o) = 12% 94 = D246 oe Vis \oasie, be mee ahould ve because the benebt of the rworger C28) & one Uae social i 3 C298) Fit 5) Bd dh = 20- ». Gar ane ig o ee re Be oe 400 Lies coal to precluce of rm 3 § wit aft ta mera en % would produce ag-0 2AuD= 12 : veneave 1G TaxHo! = 480 Fie "fe cost to produce beqval to 20, thon’ om 3 wil Mowe 12C40-30) = f120 Profit Toms wold Abeta, Finn a would favor the merger since ik Com eourn ov lighar "pr pe 100-4 nf Industry wide : pol Aes hh avant, supplied by te verge ome is ye 2A weal 9 nai’ 3 sup ict by Ye other Firms iS 2435 “ abt a= 60 Totod quent suppl QG — Sxciod costs “ wndasry wick? = Vx CHO- 90)k (40-40) = 50 Benefit “inductay-wide” < (HO-30)xGo + 30-28) Ka4= 648 Since tho benefit is gyreacter Pron the costs 7 Ure wenger chould bee 0 J opproved.2) Wags Finn's prokk under the price increase shales + = CHO -20) x60 + (40-25) X24= 420 War Firm's profit wrder Ya monopcizotion shratens 4 * C€0-25)*Ci0o- 20)= B50 Gveg {ok | an firm wl folow the most orphtabe diate wail chop ie wmesase Swwodkegy « Since PNCE, ay as odkov fey Me Costs C430), firm 38 Sk ie Gas) werger. ©. Tf the vival Foams S attitudes towarel a Wereel is posits, then omtibrust agencies . Cow trad We wero wpe market Condition to! the pacers sin eae aya Ba ser SCO VA tigy Goals roy yet wacies os assume te es th ae 6 setae atfeck the woke’ tous ton ke oye is uct harmful to Uw mowlee vo eis, hen it 3 i Vay" trad we ivok Bim econdation “e afteekedk bette de’ by 3 + er, This gives te amkitiust enncies wa Gate ton iy ae oe on inves gg ef Ure manger. Toller 4) oy oe the ae tobe, pee, he ome of the tuo ae ave. aa* =p,6aL)" «2x (200- 40)? 239% rary C4 nye thus, each a n* Bia af petit Ws fr te oar. Sheri eight moet rae gd RR the dompibitors Fier in inkdie group 4 fidmy into AMOUR 2 5 Grom a at, = a 14a 1A, aA |. oo = (0-4, dq, th 2 Abe Jl, = C900 - fete -g.-10 4, dl, oro ce 95-9, 50 =) 4, 95 thas, to moodiiog its peotit howgroup 2 Cte morgech firms) wll Chocse to prochuce. unitsHy As 0 -A « 445 ths, the profit ‘or Ue waging irons is C200-449-45-10)95 = 45125 Since 4512,5 Y Oe88, Hw wer, Fiows gain by morgine, 6) wen-woming Heme “Earn 44a echt oefore Ve were > bud syne Jmerged Bems oe wecome leaders of the I murket , rie prt to Yoh, = Yo (200-95 -445~10) 4S = YOBb 1198, 195 ach smwrging Fem ean C1444 - 1129, 125)- 319,815 Fe poh "8% ie, Boh GARE 22k RE. Conover surgus before wari: YyAatA= tp Co00-H8)162 552 SAPPY 440\"= as(f 5.) : 4x (222-8) _ 152 P= 200-1DD= 4B Consumar surplis after urging * Y, (200-545) A H2,5* 10153125 wrkehsupply = a5 + 449 < 142,5 PUOS-—MID P+ 100-1425 = 545 Scoink walfore before wager = 4 eC PC) % taoermad C910) - 4H) = YyxC 48-10) % CAI- 152.) = 402 Social welfare aPker worger « Mok Cp-CICGC1o) - 4545 ).) =, RCEENO RCRD (425) = 1128, 125 reduce wot \ dom Aikion outa, peuldliap prove, such a one ee CREELS — ComsuMey Solus, 14552-10153 And 1 dycreases Keo PY (128,129 -F22)= 404,125 i i while it ne iwereases ~ Arm prokit by 492,95. Bee. HortonsReldewn 5 hee i ‘ Petit lore ranging the reer is probable ie a pat i a-@)* cao Cea Cn _ K* epee > boris = 4x Ca-ce-xy)* ca-c)” bew-le +2)? Dena? - S) Ay Comdex? 5 ooh. L 2 OG era? b cin iy % (a-c+x)* > anc) 6 6 - 2 =) G-CtXx - ey > 4 > Galt S Ge ~ as Ae ao o x YS Go) @R-1) jy with era, a L Kiem don’t | leader power (he Ss pba, -e4Xxd 509 -abq, 2 bq,te-% - a -baye 2b junta, SUPPly imcrenses OS x > cac)(S%-1) at Hs the wevaer lead to PAE tre the rage esl to a) \ ra Verefore lower price This & VSUMeVS