Market Share in the Widget Industry

question 18

Multiple Choice

Market share in the Widget industry

-Using the market shares in the table above, if Big W wants to buy Widgette, the Federal Trade Commission will probably

• A) approve the merger because the industry is moderately concentrated and the increase in the Herfindahl-Hirschman index (HH
• I) is small enough.
• B) block the merger because the industry is moderately concentrated (HHI between 1,500 and 2,500) and the increase in the HHI is too much.
• C) approve the merger because the industry is highly concentrated (HHI exceeds 2,500) but the increase in the HHI is small enough.
• D) block the merger because the industry is highly concentrated (HHI exceeds 2,500) and the increase in the HHI is too much.

Distinguish between the types of fluctuations in time series data and their causes.

Evaluate the effectiveness of time series forecasting methods through the analysis of residual plots.

Explain the advantages and limitations of exponential smoothing.

Calculate and interpret moving averages for specified periods given historical data.

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Definitions:

Triplett

Refers to Norman Triplett's early social psychology experiment that identified the phenomenon of social facilitation, where the presence of others enhances performance on simple tasks.

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Mere-Effort Model

A theory suggesting that the mere effort of trying to achieve something can enhance the motivational value of the goal.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically showing improvement on tasks.