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 1,100,000 tons of blueberries, 5,200,000 tons of strawberries, and 10,000,000 tons of bananas. Suppose that of those total amounts, the Sunny Valley Fruit Company sells 1,000,000 tons of blueberries, 900,000 tons of strawberries, and 7,900,000 tons of bananas. Instructions: Round your answers to two decimal places. 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? percent 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

Explanation / Answer

a) Market Share = Sunny Valley’s market share / Annual sales

                          = 1000000/1100000 = .91 = .91*100 = 91%

Yes, because Sunny Valley is producing 91% of total output produced in economy.

b)     Sunny’s total sales = Blueberries sales+ strawberries sales

                                        = 1900000

    Total market sales of berries = 1100000+5200000 =6300000

   Sunny market share = 1900000/6300000= .30 = .30*100 = 30%

c) Sunny valley’s Total market share = 9800000

      Total sales = 16300000

      Sunny market share = 98000000/16300000= .601 = .601*100 = 60%

   Please write for any clarification. Please vote if possible.

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