Suppose that there are only three types of fruit sold in the United States. Annual sales are 1 million tons of blueberries, 5 million tons of strawberries, and 10 million 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 7.9 million tons of bananas.
a. What is Sunny Valley’s market share if the relevant market is blueberries? If a court applies the “90-60- 30 rule” when considering just the blueberry market, would it rule that Sunny Valley is a monopoly?
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?
c. What if the relevant market is all types of fruit? What is Sunny Valley’s market share, and would the court consider Sunny Valley to be a monopolist?