10. Questionable business practices according to antitrust agencies Complete the following table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing. Scenario Resale Price Predatory Pricing Tying Maintenance Televix is a firm that produces televisions. Suppose Televix sells its televisions to retail stores for $900 each and requires those retailers to charge customers at least $930 for each television. Book Bound sells a wide variety of books to retail bookstores. Book Bound recently published two new books: a popular mystery novel and a much less popular history book. Book Bound requires bookstores to buy 15 copies of the history book for every 120 copies of the mystery novel ordered. Coolaire is the only firm producing refrigerators. It costs $950 to produce a refrigerator, and Coolaire sells each refrigerator for $1,200. After Chillbox, a new firm with the same costs as Coolaire, enters the market for refrigerators, Coolaire starts selling its refrigerators for a price of $600. True or False: The only reason for Televix to require retailers to sell televisions at a certain price is to reduce competition and extend its market power to the retail market. Therefore, this practice is always economically inefficient. O True False

Q44 and 45

35. Consider a publicly owned nondiscriminating monopoly whose marginal cost is 10, whose average cost is 10 +90/Q, and whose demand curve is P = 100 –-Q, where P is price and Q is quantity. The government instructs the firm to produce a quantity such that MC = P. Which of the following statements is true? %3D (a) The firm makes a profit of 90 (b) The firm breaks even (c) The firm requires a subsidy of 90 (d) The firm makes a profit of 100 (e) The firm requires a subsidy of 100

38. The manufacture of Prolene is an industry that offers such large production economies of scale that single-firm production of the product is the most efficient industry structure. This industry can, therefore, be described as a pure monopoly an actual monopoly a government franchise monopoly a natural monopoly 40. In relation to the accountability of directors under the UK Corporate Governance Code, which of the following statements is true? The board should conduct a review of the effectiveness of the company's internal control systems at least annually, and of its risk management systems every two years The board should conduct a review of the effectiveness of both the company's risk management systems and its internal control systems every two years The board should conduct a review of the effectiveness of the company's risk management systems at least annually, and of its internal control systems every two years The board should conduct a review of the effectiveness of both…

Identify whether the following scenarios would come under scrutiny of the antitrust laws: A. Merger or aquisition that will come under scrutiny under antitrust laws B. Merger or aquisition that will NOT come under scrutiny under antitrust laws C. Not applicable to the antitrust laws 1. PharmaSynergy is planning to merge with BioTech Inc. and would control 55% of the drug market v 2. 2 small hair care products manufacturers, each representing 10% of the market, announce plans to merge 3. ABC Cable, a major cable company raises its prices F7 F8 F9 F10 F11 FI F2 F3 F4 F5 F6 MI

Which of the following organizations is exempt from prosecution under the Sherman Antitrust Act (1890)?     retailers     labor unions     television stations     book publishers

8. Natural monopoly analysis The following graph shows the demand (D) for gas services in the imaginary town of Utilityburg. The graph also shows the marginal-revenue (MR) curve, the marginal-cost (MC) curve, and the average-total-cost (ATC) curve for the local gas company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. PRICE (Dollars per hundred cubic metres) 2 20 18 16 14 12 10 8 MR ATC MC 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Hundreds of cubic metres) D + Monopoly Outcome (? Which of the following statements are true about this natural monopoly? Check all that apply. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The gas company is experiencing economies of scale. The gas company is experiencing diseconomies of scale. The gas company must own a scarce resource. True or False: Without government…

ft : 00:09:48 Resale price maintenance can prevent showrooming. True False In a successive monopoly structure, if distributor has a constant marginal cost of $5 and is paying the producer $12 per unit, which is the profit-maximizing wholesale price, what is the distributor's marginal revenue at this output level? $17 $12 $7 $5

11. In a particular industry the minimum value of long run average cost is reached when a firm produces 1,000 units of output per period. At this output rate, long run average cost is $ı per unit of output. The market demand curve for this product is as follows: Price Quantity $3.00 1,000 8,000 12,000 20,000 2.00 1.00 .50 Is this industry a natural monopoly? Why or why not?

12: Suppose Vought International has a monopoly on "Supe" protective service plans. The inverse demand for protective service plans Q is p(Q) = 240 – 8Q while the cost of protective service plans is C(Q) = 2Q? (1) Find the number of plans Q Vought International chooses, and the corre- sponding price p. (2) How much deadweight loss does the monopoly create?