ques4 - may be explicit (such as costs of advertisement to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Kathy Tao Econ 101 Sect 24 Question of the Week #7 1) In determining “bigger-is-better,” I would have considered the total costs and total revenue of operating alone (total costs are more than my total revenue, since I’m making a loss) vs. the total costs and total revenue of operating with the two companies combined (predicted total costs should be less than predicted total revenue, since I’m hoping to make a profit), as well as the costs of fighting competing satellite radio stations—which
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: may be explicit (such as costs of advertisement to draw listeners away from the other radio station) and/or implicit (i.e., opportunity coststhis advertisement money could have instead been used to create new radio programs). 2) As a government regulator, the factors I would consider are the number of firms in the market and the share of each firmessentially, the HHI. If this merger results in an HHI much greater than 1800, I would probably not approve of the merger....
View Full Document

This note was uploaded on 02/17/2009 for the course ECON 101 taught by Professor Burkhauser during the Spring '08 term at Cornell University (Engineering School).

Ask a homework question - tutors are online