1. A merger between Shaw and Rogers (both of which are major firms in the telecommunication industry) would be an example of a.........................

Select one:

a.

vertical merger.

b.

horizontal merger.

c.

conglomerate merger.

d.

trust

e.

cartel

2. Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly. As a result of this change,

Select one:

a.

price will be higher, consumer surplus will be greater, and output will be greater.

b.

price will be higher, output will be lower, and the deadweight loss will be eliminated.

c.

consumer surplus will be smaller, producer surplus will be greater, and there will be a reduction in economic efficiency.

d.

consumer surplus will be smaller and producer surplus will be greater. There will be a net increase in economic surplus.

e.

economic efficiency will increase because the firm is more conscious about its image than it was with a competitive market.

3. Economic inefficiency in a monopoly is characterized by...........................

Select one:

a.

imperfect information

b.

a higher price

c.

being the sole seller of a product

d.

adequate output produced

e.

deadweight loss