QUESTION 1 Firms can be convicted for cartel activities even if there is no hard evidence of a contract, agreement or understanding. O True False QUESTION 2 Exclusive contracts between a buyer and a seller are not prohibited per se. Competition authorities assess them on a case-by- case basis. O True False QUESTION 3 Antitrust authorities consider a firm as dominant if it has a market share of at least 50 percent. O True FalseQUESTION 4 An incumbent reducing its price after entry of a competitor is always sign of predatory pricing. O True False QUESTION 5 When an incumbent uses price wars to prevent the market entry of competitors, consumers are always worse off. O True O FalseQUESTION 6 The ACCC wrote a media release which made the following claim: "To use Calvary medical facilities, a medical practitioner enters into a contract with Calvary granting them rights to use Calvary medical facilities. In March 2011, Calvary introduced a new set of by-laws that governed the conduct of medical practitioners who wish to use Calvary's medical facilities. The by-laws included provisions that allowed Calvary to refuse to grant, or to revoke, the right of a medical practitioner to use its facilities if the medical practitioner had become involved in the operation of a business in competition with Calvary." What is the name of the practice that the ACCC is alleging here? Exclusionary Conduct Predatory Pricing Excessive pricing. Collusion.QUESTION 7 Consider the following entry game between an incumbent (I, blue payoff) and an entrant (E, green payoff). E enter out (60+60, 0) fight accommodate E E out stay (10+860, -20) (20+620, 20+620) Which one of the following statements is correct? The entrant will always stay out of the market in equilibrium. The entrant will always enter the market in equilibrium In equilibrium, the entrant enters the market if o is larger than 1/4. In equilibrium, the entrant enters the market if o is smaller than 1/4. None of the above.QUESTION 8 Consider a market with an incumbent firm, a potential entrant and two buyers, B1 and B2. The incumbent offers payments t1 and t2 for buyer 1 and 2, respectively, in exchange for an exclusive contract. If at least one buyer accepts an exclusive contract, there is no entry and both buyers get zero surplus. If both buyers reject the exclusive contract, entry occurs and buyer 1 gets a surplus of 90 while buyer 2 gets 130. The buyers decide simultaneously whether to accept or reject the offer. Assume that if a buyer gets the same payoff with both options, he/she accepts the exclusive contract. What are the contract offers t1 and t2 that minimise the payment of the incumbent to the buyer and prevent entry? B2 Reject B1 Accept Accept t1, t2 t1, 0 Reject 0, t2 90, 130 O t1 = 0 and t2 = 90 O t1 = 130 and t2 = 90 O t1 = 0 and t2 = 220 O t1 = 90 and t2 = 130 None of the above.QUESTION 9 Question has been withdrawn due to a disrupted hyperlink. Please tick any of the below responses. OA OB Oc OD