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1. Describe the phenomenon of market foreclosure. Specifically, describe how a vertical merger may "substantially lessen competition or tend to create a monopoly" through virtue of market foreclosure. Describe how the following mergers might result in market foreclosure:
a. A shoe manufacturer integrates "downstream" by merging /acquiring a shoe retailer (make reference to the Brown Shoe case here).
b. A dominant cable TV distributor (such as Time-Warner or Sudden Link) integrates "upstream" by the merger/acquisition of programmers such as HBO, MTV, or ESPN.
What are the characteristics of a Perfectly Competitive Market and what are the Characteristics of a Monopoly?
The demand curve for the product X is given by Qdx = 460 - 4Px. How much consumer surplus do consumers receive when Px = $35?
Use demand and supply analysis to assist you, determine the effects on the exchange rate in British pound and the Japanese yen from
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Lawn mowing services are supplied by host of individuals in suburb of Westbrook. Demand and supply conditions in the perfectly competitive domestic for lawn mowing services are:
Create a list of reasons for your recommendation and include considerations of product features and use of advertising.
Two partners who owns IT Business Solutions, a company supplying specialist software, operate out of an office in Fourways, Johannesburg but have discovered a vacant office building close to Sandton City.
Find out the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in this market. Also determine the full economic price paid by consumers.
Give an example of how you would use this information to set the price for your product in the market place and explain one factor in detail about how shifting demand and supply curves makes market demand estimation difficult
Explain how microsofts bundling of free internet browser software with its windows operating system could violate US antitrust laws, and be sure to mention which laws in particular might be violated.
Describe the difference between short run and long run as they are used in economics. Differentiate between Economics of scale and Diseconomies of scale.
Compute the profit maximization level of activity. Compute total revenue, total cot and profit or loss at profit maximization level of activity. Compute elasticity of demand at profit maximization. Compute the breakeven level of activity.
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