Econ220 - 1101b-16 Microeconomics

Industry Description:

1. Describe the firms in the proposed merger. List their annual sales, and extent of their operations.

2. From the firms' point of view, what are some of the incentives to consolidate?

3. List and describe the firms in the industry.

4. Describe the product, production methods, scale of production, and sources for raw materials. What technologies are used?

5. Describe the competitive environment within the industry. Is there a dominant firm? Are the other firms follow or actively compete? How do they compete? (For example, by using price, advertising, quality or some other variable.)

6. Report and interpret the 4 firm concentration ratio, the 8 firm concentration ratio and the Herfindahl Herschler Index for the industry.

Part 2) Two Arguments:

In a separate group discussion board, present two arguments. The first should argue in favor of