Question 8 As with most vertical merger cases, such as the Time Warner/Turner Broadcasting vertical merger case (and the more recent Time Warner/ATT case), the primary concern of the Federal Trade Commission/Justice Dept. is that: Answer saved Marked out of 2.00 Select one: F Remove flag O a. this type of merger would lead to exclusion, as the merged firm would foreclose upstream input markets to input providers O b. none of the other choices given O c. this type of merger will replace management unnecessarily O d. this type of merger will increase long run average costs for the merged firm Clear my choiceSuppose that in a two-period durable goods monopoly framework, the firm will rationally lower its price to $1 in period 2. Then, to induce a forward-looking high demand individual who values the good at $5 per period of consumption to purchase in period one, the firm can charge at most a first-period price of |5 dollars (do not include dollar sign $ in your answer - e.g., if your answer is $20, then enter your answer as 20).There are six firms operating in an industry. The market shares of the firms, in no particular order, are as follows: 20, 5, 5, 15, 30, and 25. The four firm concentration ratio (CR4) for this industry is equal to: Answer: 90Which of the following best describes a potential source of barrier to exit: Select one: O a. contestable markets O b. large sunk fixed costs O c. time inconsistency O d. large recoverable fixed costsQuestion 12 Which of the following statements are correct? (choose any and all correct statements. Incorrect choices will be penalized). Answer saved Marked out of Select one or more: 2.00 O a. Stigler views a barrier to entry as the extent to which an existing incumbent firm is able to earn positive economic profit in the long run without attracting entry. F Flag question O b. Stigler views a barrier to entry as a cost which must be borne by a potential entrant that is not borne by an existing incumbent firm. O c. According to Bain, economies of scale are a source of barrier to entry. d. Stigler views economies of scale as a source of barrier to entry.meson '1 3 Arstrre' saved Marked out of 2.2":- t. Fag queau'on If a firm practices product crimping [the damaged goods scenario]. then the marginal cost of its lowend product Select one: 1'; a. will be less than that for its highend product 1'; ti. will be greaterthan that for its highend product (I) c. will be equal to that of its highend product f; d. will be none of the other choices given Clear my choice Question 14 Under third degree price discrimination, a monopolist can increase its profits by charging: (choose any and all correct statements. Incorrect choices will be penalized.) Answer saved Marked out of 2.00 Select one or more: Flag O a. a higher price to the group with the higher marginal revenue question b. a higher price to the group with the lower price elasticity of demand O c. a higher price to the group with the higher price elasticity of demand O d. a lower price to the group with the higher marginal revenue Previous pageQuestion 15 The "price standard" under which antitrust authorities will allow horizontal mergers only when they are expected to produce sufficient efficiencies that lead to a reduced price after the merger Answer saved Marked out of Select one: 2.00 O a. will lead to an excessive amount of welfare decreasing mergers F Flag question O b. follows directly from the Coase Conjecture O c. will cause some mergers to be disallowed, even if they would increase overall social welfare O d. is the appropriate standard to apply to mergers, from an economics standpoint Clear my choice Previous page