Determine whether each of the statements regarding the regulation of mergers in the United States is true or false by draggingthe true and false labels into the correct binsThe Department of Justice and the Federal Trade Commission areAnswer Bankresponsible for approving mergers and enforcing antitrust lawfalsetrueMarket definition is one of the main parts of current merger guidelines.The Federal Reserve oversees the enforcement of antitrust lawMeasure of concentration is one of the main parts of currentmerger guidelines.Mergers that result in a relatively high HHI are less likely to be approvedthan mergers resulting in a lower HHI.Firm diversification is one of the main parts of the currentmerger guidelines

The Department of Justice and the Federal Trade Commission are responsible for approving mergers and…

Answered: Determine whether each of the…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.11P

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Is it true that a merger between two films that are not already in the top four by size can affect both the four-firm concentration ratio and the Herfindahl-Hirshmau Index? Explain briefly.
4. Analyze effectiveness of antitrust laws by noting how they have been applied to monopolies, mergers, and price fixing.
Government should regulate mergers between firm's give reason in favor and against this statement
Economics Which of the following is the most valid criticism of the regulation of natural monopolies and other firms subjeorfo regulation by regulatory commissions? Select one: O A. Such regulation is unnecessary and amounts to creeping socialiam. O B.Itis difficult to find enough honest people to serve on regulatory commissions O C. Many members of such commissions are appointed rather than being elected OD Regulated firms may have little incentive to contain costs since they are assured a fair return above costs
Merger of beer giants faces obstacles Mega-brand beers have lost market share to wine and craft beer. In response, Anheuser-Busch InBev and SABMiller, the two biggest brewers in the world, are discussing a merger that would be scrutinized by antitrust regulators. Source: The New York Times, September 16, 2015 How would a merger benefit the two big brewers? Under what circumstances would the Federal Trade Commission (FTC) challenge the merger? A merger would benefit the two big brewers because O A. the price of beer would fall close to the price in a perfectly competitive market and sales would increase O B. average total cost would increase but price would increase by more than average total cost O C. the price of beer could rise close to the monopoly price and economic profit would increase O D. many craft brewers would be forced out of the market The Federal Trade Commission would challenge the merger if O A. it increases the HHI O B. the HHI is less than 1,500 O C. the HHI is…
120 110 100 90 80 70 $ per unit 60 50 % 40 ATC MC 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 Quantity D MR Consider the cost curves of a natural monopoly along with its demand and marginal revenue curves shown in the graph above. What aspect of the graph results in us denoting this as a "natural" monopoly? Marginal cost is upward sloping Marginal cost intersect average total cost at the minimum average total cost Demand intersects the downward sloping portion of average total cost Monopolist makes a profit when marginal revenue is equal to marginal cost
Question 18 Dollars bon 0 MR g Output hj MC ATC The diagram above shows kinked demand and marginal revenue curves for a non-collusive oligopolist. What basic assumption is used to create this kinked structure) O firms ignore action of rival hems Orivals will match both a price increase and a price decrease Crivals will match a price increase but ipnore a price decrease rivals will ignore a price increase but match a price decrease No new
1>Why does regulatory capture reduce thepersuasiveness of the case for regulating industries forthe benefit of consumers? 2>. In the middle of the twentieth century, major U.S.cities had multiple competing city bus companies.Today, there is usually only one and it runs as asubsidized, regulated monopoly. What do you supposecaused the change?
Let's assume that the biggest two firms in the video game sector merged and that the market share of the new firm representing the two merged firms is equal to 39% of the market. Let's assume that after merger HHI of the video game industry is 2071. Based on the Federal Trade Commission's historical standards for mergers, would the Federal Trade Commission certify this merger? No, the FTC would probably challenge the merger. No answer text provided. Maybe. The FTC would scrutinize the merger and make a case-by-case decision. Yes, the FTC would ignore the merger and allow it to go through.
Over the years since the early 1900s, the U.S. government's and courts' aggressiveness in interpreting and enforcing antitrust laws have A. been generally increasing. B. fluctuated between tough and lax. C. been declining. D. mostly been quite lax.
4. Professor Afano has a monopoly in the market for Intermediate Micro Il textbooks. The time- discounted value of Professor Afano's future earnings is $10,000. Professor Dinero is considering whether to release a competing book. Suppose that with two books on the market the time- discounted value of each professor's future earnings will be $300. Professor Afano is considering strategies to deter Professor Dinero's entry. The professors know profits that are earned by both players in each of the two scenarios (with and without Dinero's entry) and this is a one-shot game with no counteroffers. Assess the rationality of each strategy. Explain your reasoning. Professor Afano threatens to cut his price and attack the credibility of Professor Dinero's book through targeted social media ads. This would result in Professor Dinero losing $8 and Professor Afano earning a time-discounted profit of $700. a. b. C. d. Professor Afano makes a side-deal with Professor Dinero and pays him $200 to stay…
1. Should the U.S. government regulate more, less, or take no antitrust action against the Big Tech firms?

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