1.The Ford Motor company wants to expand its production of electric vehicles. Ford produces electric vehicles. SK Innovation produces batteries used in electric vehicles. Suppose Ford and SK Innovation form a joint venture to produce batteries for electric vehicles at a factory in the United States. Would this joint venture be considered a horizontal or vertical agreement? Explain your reasoning.

2. Suppose all of the firms that make up the electric vehicle market merged into a single firm. Would this joint venture be considered a horizontal or vertical agreement? Explain your reasoning.

3. Again. Suppose all of the firms that make up the electric vehicle market merged into a single firm. Explain how the SSNIP test can be used to assess whether this firm is indeed a monopoly.

4. In some instances, antitrust regulators might not consider the production of a product by a single firm as sufficient evidence that a monopoly exists. Provide the economic rationale for this possibility.