QUESTION 1 I. A business ocurs when, for practical purposes, one firm purchases

Question

QUESTION 1 I. A business ocurs when, for practical purposes, one firm purchases merger X loss × | acquisition antitrust violation 0.5 points (Extra Credit) QUESTION 2 accounted for by the largest four firms × l coordination ratio × 1 market share ratio × | concentration ratio I. The four-firm measures the percentage share of the total sales in the industry that is | × | production ratio 0.5 points (Extra Credit) QUESTION 3 Regulations that permit a regulated firm to cover its costs and to make a normal level of profit are commonly referred to as 1. cost-plus regulation. price cap regulations. regulatory capture. profit regulation. 0.5 points (Extra Credit) QUESTION 4 . Antitrust laws were created to give government the power to X block certain mergers and break up large firms into smaller ones. X block cartels, and break up regulatory capture. x: force the firm to sell off the profitable parts of its operation. X block certain mergers that are determined to be uncompetitive

Explanation / Answer

1.

acquisition

the above is the answer as in this case acquier takes the control over the target company.

2.

concentration ratio

the above is the answer as this measures the concentration levels in the industry.

3.

cost-plus regulation

the above is the answer as you base your prices on costs basis.

4.

block certain mergers and break up large firms into smaller ones.

the above is the answer as it is used to maintain competition in the market.

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