1.Which of the following may reduce the degree of competition in a given industry?

a.Mergers

b.Patents

c.Government licenses

d.All of the above

2.Which of the following markets can be characterized by Perfect competition (no market power)? Please indicate as YES or NO, and why.

a)for entertainment, video rentals;

b)for energy, gasoline;

c)for services, baby-sitting;

d)Banking- credit cards.