Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 18 - Antitrust Policy and Regulation - Problems - Page 390: 1c

Answer

$60.6\%$

Work Step by Step

Total fruit = 1.0+5.0+10.0=16.0 million tons. Sunny’s total = 0.9+0.9+7.9=9.7 million tons. Share = 9.7/16.0=0.60625≈60.6%. A share of ≈60.6% sits at the 60% threshold in the 90–60–30 rule. That is high concentration — courts using that heuristic would typically view the firm as having monopoly power or being dominant in the all-fruit market (it’s essentially at/just above the 60% cutoff). Whether a court formally labels it a “monopolist” could depend on additional evidence, but under the rule-of-thumb the firm would be treated as highly dominant.
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