Download ECON 202: QUIZ 11 With Explained Answers 100% Correct Download To Score A and more Exams Nursing in PDF only on Docsity!
- tie-in sales Question 1 (1 point) A manufacturer that only allows a consumer to purchase one product if they also buy another product is usingto increase its profits. Question 1 options: Save Question 2 (1 point) A narrowly defined market will tend to make concentration appear, while a broadly defined market will tend to make it app Question 2 options: Save Question 3 (1 point) Antitrust laws were created to give government the power to Question 3 options:
- analysis using numerical tools. Save Question 4 (1 point) Antitrust regulations would most likely require one of the following in order to determine whether or not a merger may enhanc Question 4 options:
- block certain mergers that are determined to be uncompetitive.
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- exclusive dealing
- predatory pricing
- bundle dealing
- concerning; less concerning
- higher; smaller
- less concerning; concerning
- smaller; higher
- block certain mergers and break up large firms into smaller ones. Correct
- block cartels, and break up regulatory capture.
- force the firm to sell off the profitable parts of its operation.
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- obvious objective judgments.
- readily qualified judgments.
- highly complex analytical tools.
The marginal cost of going from a production of 4 million therms to a production of 5 million therms is Question 5 options: City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below
- $20 million
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Quantity (Millions of therms) Price ($ per therm) Total Cost (million $) 1 48 35 2 44 64 3 38 90 4 30 113 5 20 133 6 8 150
- $133 million
- $113 million
- $23 million
An unregulated monopoly will have a of. Question 6 options: Save Question 6 (1 point) City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below
ECON 202: QUIZ 11 With Explained Answers 100% Correct
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Quantity (Millions of therms) Price ($ per therm) Total Cost (million $) 1 48 35 2 44 64 3 38 90 4 30 113 5 20 133 6 8 150
- loss, $24 million
- loss, $7 million
Save Question 7 (1 point)
- profit, $24 million
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- profit, $7 million
If the government decides to regulate this natural monopoly by forcing them to produce at the point where the demand curve intersects average cost, then compared to the unregulated natural monopoly, the price will and the quantity will. Question 7 options: City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below
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Quantity (Millions of therms) Price ($ per therm) Total Cost (million $) 1 48 35 2 44 64 3 38 90 4 30 113 5 20 133 6 8 150
- fall, rise
- rise, rise
- rise, fall Save Question 8 (1 point)
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- fall, fall
- would not be considered particularly high Save Question 9 (1 point) In the 1980s, the FTC followed guidelines stipulating that, should a proposed merger result in an HHI of less than 1,000, Question 9 options:
- the FTC would probably approve it. Save Question 10 (1 point) In the U.S., aboutof all reported merger and acquisition transactions in 2008 exceeded $500 million, while aboutexceeded $ Question 10 options:
- 70 Save Question 11 (1 point) The information below sets out the estimated market shares for the cellular phone manufacturing market. Firm Market Share Nokia 36% Fujitsu 3% Kyocera 3% LG 6% Motorola 16% Samsung 6% Sanyo 4% Siemens 7% Sony Ericsson 11% Plus 8 more firms with 1% each Based on this information, the four-firm concentration ratio is Question 11 options:
4) 25%; 10%
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If the largest four firms in an industry control less than half the market, their competitive concentration ratio Question 8 options:
- would be considered to be especially high.
- would not be considered particularly low.
- would be considered to be especially low.
- the FTC would probably challenge it.
- the FTC would scrutinize the proposal.
- the FTC make a case-by-case decision.
- 80%; 20%
- 99%; 1%
- 60%; 40%
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2) 68
3) 65
Save Question 12 (1 point) The information below sets out the estimated market shares for the cellular phone manufacturing market. Firm Market Share Nokia 36% Fujitsu 3% Kyocera 3% LG 6% Motorola 16% Samsung 6% Sanyo 4% Siemens 7% Sony Ericsson 11% Plus 8 more firms with 1% each Based on this information, the Herfindahl-Hirschman Index is Question 12 options:
- 1, Save Question 13 (1 point) The information below sets out the estimated market shares for the cellular phone manufacturing market. Firm Market Share Nokia 36% Fujitsu 3% Kyocera 3% LG 6% Motorola 16% Samsung 6% Sanyo 4% Siemens 7% Sony Ericsson 11% Plus 8 more firms with 1% each If Samsung were to acquire Sanyo, the four-firm concentration ratio would be Question 13 options:
- 73
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4) 73
1) 1,
2) 2,
4) 1,
1) 70
2) 65
Save Question 14 (1 point) The main challenge for antitrust regulators is Question 14 options: Save Question 16 (1 point) Which of the following is a valid criticism of the reduction of competition that results from corporate mergers? Question 16 options:
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4) 68
- to figure out how to best benefit consumers.
- to facilitate privatization of government assets.
- to promote the concept of a market-oriented economy.
- to determine when a merger may hinder competition. Save Question 15 (1 point) The most famous restrictive practices case of the last several decades involved a series of lawsuits by the U.S. government against Microsoft. These particular lawsuits were encouraged by Question 15 options:
- all of Microsoft's competitors.
- U.S. consumers.
- some of Microsoft's competitors.
- U.S. antitrust regulators.
- merged firms generally are as efficient and innovative as they can be
- consumers will have greater access to lower priced goods and services
- merged firms can increase price and maintain permanently higher profits
Save Question 17 (1 point) Which of the following has become a common condition for allowing a merger of large firms? Question 17 options:
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- merged firms are better positioned to take advantage of economies of scale
- commitment to operate in a market-oriented economy
- commitment to open a new factory
- commitment to sell off certain parts of the firms
- commitment to hire more workers Save
Question 18 (1 point) Which of the following denotes a weakness that is common to both the four firm concentration ratio and the HHI? Question 18 options:
- assuming the subject market is well-defined relative to measuring how sales are divided within it.
- they might also compete to make riskier loans, potentially imperiling the safety of the banking system. Save Question 19 (1 point) Which of the following completes the argument against deregulation of U.S. banks that began with the phrase: "if banks comp Question 19 options: Save Question 20 (1 point) Why would regulators find that a proposed merger is likely to lessen competition? Question 20 options:
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- assuming the subject market is poorly defined relative to measuring its concentration of competition
- case-by-case analysis of the extent of competition is highly subjective.
- case-by-case analysis of the extent of competition is highly objective.
- they might also compete to make less riskier loans, potentially imperiling the U.S. consumers' reliance on credit.
- they will end up playing a large role in setting the regulations that they will follow.
- they will send lobbyists to offer well-paid jobs to some of the retiring members of the regulatory board
- it can lead to lower prices
- it can increase availability of goods
- it can enhance innovation
- it can lead to lower quality products Save
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