Overview

Complete the following Unit 3 Written Homework Assignment for this module by the stated due date on the Schedule. Please submit in theUnit 3 Written Homework Assignment Dropboxas a .doc, .docx, .pdf or .rtf file.

Instructions

Complete the following questions in the form of short essays. Each question is worth 6 points. Be sure to cite your references.Type all responses following each question on this assignment page and submit to the Dropbox.

1. Describe what a merger is and then explain the difference between a vertical merger and a horizontal merger.Do some searching and give one example of a recent merger of 2 companies.
2. What are barriers to entry?Give examples of barriers to entry.In what ways is government involved with the creation of barriers to entry?
3. For a perfectly competitive firm, if economic profits exist, how will this impact the number of firms in the industry?If economic losses exist?What will long-run economic profits be for the perfectly competitive firm?
4. The United States Department of Justice enforces the Sherman Anti-trust Law.Read the following document located at:

https://www.justice.gov/atr/price-fixing-bid-rigging-and-market-allocation-schemes

In a 2 paragraph summary, explain what some of the most common forms of collusion and anti-trust violations are and how the US Justice Department enforces the Sherman Act to promote competition.

1. Explain how a monopolist can increase profits by price discriminating.What are the conditions necessary for price discrimination?

1. Read the following article, US Blocks one of the World's Biggest Razor Companies from Buying Harry's, found at:

https://www.cnn.com/2020/02/03/business/ftc-harrys-schick-owner/index.html

Answer the following 3 questions:

1. Why did the FTC file this lawsuit?
2. Why is competition deemed better for consumers?
3. What factors tend to drive mergers and acquisitions?

1. Utilizing the chicken wing production function that we completed in the Module 2 homework assignment which would have the following answers, respond to the questions given, assuming the firm is a perfectly competitive firm:

Input Output (Hours) (Wings) MPP TFC TVC TC AFC AVC ATC MC 25 118 250 212.50 462.50 2.1 1.8 3.9 6.7 1.3 35 185 250 297.50 547.50 1.4 1.6 3.0 5.7 1.5 45 242 250 382.50 632.50 1.0 1.6 2.6 5.1 1.7 55 293 250 467.50 717.50 0.9 1.6 2.4 3.8 2.2 65 331 250 552.50 802.50 0.8 1.7 2.4 2.9 2.9 75 360 250 637.50 887.50 0.7 1.8 2.5MC AC A D MR O QS Output