COPY: Regulation of Competition
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Questions and Answers

Which of the following is a reason firms might reduce competition?

  • To improve consumer choice
  • To enhance market efficiency
  • To maintain high prices (correct)
  • To increase innovation
  • European competition law prohibits agreements that reduce competition.

    True

    Which of the following is NOT a relevant type of merger for competition policy?

  • Conglomerate merger
  • Transnational merger (correct)
  • Vertical merger
  • Horizontal merger
  • A merger between two companies that operate at different stages of the supply chain is called a ______ merger.

    <p>vertical</p> Signup and view all the answers

    What is the primary goal of merger control in the EU?

    <p>To prevent harmful effects on consumers</p> Signup and view all the answers

    What is a hypothetical monopoly test used for?

    <p>To identify the relevant market by determining if a monopolist can sustain a small and significant non-transitory increase in prices.</p> Signup and view all the answers

    The Herfindahl-Hirschman index is a measure of market concentration.

    <p>True</p> Signup and view all the answers

    Which of the following is a potential effect of a merger?

    <p>Reduction of competition</p> Signup and view all the answers

    Which article of TFEU prohibits dominant position abuses?

    <p>Article 102</p> Signup and view all the answers

    Match the following definitions with their corresponding terms:

    <p>Horizontal Merger = Between competitors Vertical Merger = Between companies at different stages of the supply chain Conglomerate Merger = Between unrelated businesses</p> Signup and view all the answers

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