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 (A)

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

<p>To prevent harmful effects on consumers (A)</p>
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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>
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The Herfindahl-Hirschman index is a measure of market concentration.

<p>True (A)</p>
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Which of the following is a potential effect of a merger?

<p>Reduction of competition (C)</p>
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Which article of TFEU prohibits dominant position abuses?

<p>Article 102 (B)</p>
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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>
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