Question 26 This type of merger refers to when two (or more) companies who are in different stages of the same supply chain merge. Anticompetitive Merger Lateral Merger Horizontal Merge Vertical Merger
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- Zyon pharma is a small company that specializes in contact lenses. They purchase another company that specializes in contact lens solution. This is an example of: O Selective merger O None of the above C Horizontal merger Vertical mergerANSWER ALL QUESTIONS 1,2 and 3 Sainsbury's-ASDA merger blocked by the regulator (Competition and Markets Authority) (CMA) 1) Do you think the reasons for a merger between ASDA and Sainsbury mentioned in the news are justifiable? Why did the supermarkets want to merge? The deal would have created the UK's biggest supermarket chain, accounting for £1 in every £3 spent on groceries. Sainsbury's and Asda had said the planned tie-up would have cut their costs, allowing them to lower prices for consumers across the UK. Analysts also believed it was designed to help the two supermarkets counter the rise of discounters Aldi and Lidl in the increasingly competitive grocery market. 2) The CMA provides economic justifications to the merger block by regulators in the UK. Do you think the justifications are reasonable? Why was the CMA concerned? But the CMA, which had previously raised concerns about the deal, said the merger would lessen competition at both a national and local level. Sainsbury's…If two companies are seeking regulatory approval to merge their respective businesses, which of the following will most likely be the focus of the arguments that they will present in favor of the merger? Group of answer choices, select all that apply: _ The newly created firm will benefit consumers by operating more efficiently. _ The newly created firm is able to take advantage of economies of scale. _ Consumers can purchase better quality goods or services at a lower price.
- Case summary: Professor W distributed copies of a section from business law text book to his students while he delivered a lecture about business torts at the University. Daughter of one of the textbook authors, present at the seminar, told her father, who in turn filed a suit against Professor W for copyright infringement. To find: Infringement of the copyright and the result of the case.COURSE: MICROECONOMICS LEVEL 2 COURSE: MICROECONOMICS LEVEL 2 Consider a company A operating in an oligopoly which has a market share of 20% and a unit cost of $50. It currently sells at a price (P) of $52.9 with a price elasticity of demand of -3.5. This company will merge with company D, so that market share will reach 50%. Estimate impact of this operation on selling price under 2 scenarios:(a) With economies of scale, given the merger. Cost reduction of 15%.b) Without economies of scale, constant cost of 50%.c) How much does market power of merged company change, considering with and without economies of scale?Economists believe mergers can sometimes achieve greater efficiency than two companies that do not merge. true or false
- Sainsbury's-ASDA merger blocked by the regulator (Competition and Markets Authority) (CMA) 1) What type of market or industry are both supermarkets? Justify your answer clearly. 2) Do you think the reasons for a merger between ASDA and Sainsbury mentioned in the news are justifiable? Why did the supermarkets want to merge? The deal would have created the UK's biggest supermarket chain, accounting for £1 in every £3 spent on groceries. Sainsbury's and Asda had said the planned tie-up would have cut their costs, allowing them to lower prices for consumers across the UK. Analysts also believed it was designed to help the two supermarkets counter the rise of discounters Aldi and Lidl in the increasingly competitive grocery market. 3) The CMA provides economic justifications to the merger block by regulators in the UK. Do you think the justifications are reasonable? Why was the CMA concerned? But the CMA, which had previously raised concerns about the deal, said the merger would lessen…Question 12 Higher barriers to entry and exit are generally associated with lower profits higher profits lower advertising higher advertising(REAL-WORLD APPLICATION) You are NOT required to read the oligopoly chapter in the textbook, but you already know quite a lot about it from our discussion of strategic interactions using game theory in weeks 2-3. This market structure is between monopoly and monopolistic competition, with only a handful of firms having a high degree of market power. Let's refresh your memory with the following example. Assume that the Australian low-cost airline industry consists of two firms and their situation can be represented by the following payoff matrix. Tigar Air Nothing Low Price More Advertising 0, 16 6, 6 Nothing 10, 10 2, 14 Jetstar Low Price 16, 0 12, 4 More Advertising 14, 2 4, 12 8, 8 a. Before solving the game, put yourself in the position of Jetstar and write down your action. Then independent of that, put yourself in the position of Tiger Air and write down your action. b. State all the dominated strategies in the full game, by which strategy they are dominated, and whether weakly or…
- Market Share % 25 8 5 4 4 2.5 2 1.5 Grocery Store Walmart Kroger Albertsons Ahold Delhaize Publix H-E-B Aldi Group Meijer 48 Independent Grocers @ 1% each Use the above information to answer the following questions. What is the four-firm concentration ratio before the merger? What is the market structure? (Click to select) What is the industry HHI before the merger? Kroger and Albertsons propose a merger. What is the industry HHI after the merger?What was the main business and conditions for Stanley works and black & decker before the merger? What industries both companies worked in? And what were reasons for the merger.The Justice Department and the Federal Trade Commission are likely to oppose mergers a. that create a larger firm with economies of scale in a contestable market. b. which will help one of the merging firms out of financial difficulties. c. which threaten to reduce competition. d. that seem likely to increase efficiency.
