One important factor that the Department of Justice and the FTC must consider wh

Question

One important factor that the Department of Justice and the FTC must consider when assessing the likely effects of a merger is the definition of the market. Discuss how geography is likely to affect the definition of the market for Computer hardware Choose the correct answer below. OA. Due to the perishability of computer hardware, the definition of the geographic market will be the region close to the manufacturer O B. Due to the high transportation costs of computer hardware, the definition of the geographic market will be the region close to the manufacturer. C. Since computer hardware is not perishable has low transportation costs, and customers do not have varying preferences, the geographic market is large. O D. Due to customers' varying preferences of computer hardware, the definition of the geographic market will be the region close to the manufacturer.

Explanation / Answer

1. The right answer is option c. Since computer hardware is not perishable, has low transportation costs, and customers do not have varying preferences, the geographic market is large.

Explanation: Hardware products are not perishable like food products. These products can sustain for a very long time if kept in a suitable environment. Also, due to the small size of computer hardware, the per unit transport cost relative to their price is very small. Moreover, customers do not have varying preferences about computer hardware as these are very technical product and customers hardly have much information about them. So, the geographic market for computer hardware is very large.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.