5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E. Two companies in Town A apply for a merger. The current price in the market is $200 (the per unit cost for all suppliers is $180). There are other suppliers located in town B, C, D, E, F, G, H and I. The distances from town A are as follows:
Town B: 20
Town C: 28
Town D: 31
Town E: 36
Town F: 45
Town G: 58
Town H: 65
Town I: 69
Transportation cost of one unit of the product is $0.3 per kilometre. The competition authority applies a SSNIP to define the market for this merger application. Which of the following statements is correct? There may be more than one correct statement.
None of the given answers.
In a 10% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F, G.
In a 10% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F, G, H, I.
In a 5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F.
In a 5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D.
In a 10% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E, F, G, H.
In a 5% SSNIP test, the relevant market is given by suppliers in the towns A, B, C, D, E.
Leave a Reply