Suppose that there are only three types of fruit sold in the United States. Annu

Question

Suppose that there are only three types of fruit sold in the United States. Annual sales are 1,000,000 tons of blueberries, 5,000,000 tons of strawberries, and 11,000,000 tons of bananas. Suppose that of those total amounts, the Sunny Valley Fruit Company sells 900,000 tons of blueberries, 900,000 tons of strawberries, and 8,500,000 tons of bananas Instructions: Round your answers to the nearest whole number a. What is Sunny Valley's market share if the relevant market is blueberries? percent. If a court applies the "90-60-30 rule" when considering just the blueberry market, would it rule that Sunny Valley is a monopoly? [Click to select) b. What is Sunny Valley's market share if the relevant market is all types of berries? Would the court rule Sunny Valley to be a monopolist in that market? (Click to select) C. What if the relevant market is all types of fruit? What is Sunny Valley's market share? percent. Would the court consider Sunny Valley to be a monopolist? (Click to select)

Explanation / Answer

a) Sunny valley’s market share = (900000/1000000)*100 = 90%

b) Total supply of sunny valley = 900000+900000 = 1800000

Total Sale in Market = 1000000+5000000 = 15000000

Sunny Valley Share = (Sunny valleys sale/ Market sale )*100 = (1800000/15000000)*100 = 12%

c) Market share = (8500000/11000000)*100 = 77.27%

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