1.Describe what a merger is and then explain the difference between a vertical merger and a horizontal merger. Do some searching and give one example of a recent merger of 2 companies.

2.What are barriers to entry? Give examples of barriers to entry. In what ways is government involved with the creation of barriers to entry?

3.For a perfectly competitive firm, if economic profits exist, how will this impact the number of firms in the industry? If economic losses exist? What will long-run economic profits be for the perfectly competitive firm?