Suppose that there are only three types of fruit sold in the

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.

Solution

Solution:-

(A). sunny valley market share in blueberries=900000/1000000=90%

Yes, it would be ruled as monopoly

(B). market share= (900000+900000)/(1000000+5000000)=30%

No, it would be not be ruled as monopolist

(C). market share= (900000+900000+8500000)/(1000000+5000000+11000000)=61%