This is my last lesson this year!

So and end of term and year test:

1. What are the advantages of vertical mergers?

Vertical mergers:

a. economies of scale - technical, marketing, administrative

b. greater efficiency - productive? owing to economies of scale

c. control over distribution or supply. This may mean you can reduce the supply or distribution of competitors

d. the above will increase profits

This is an article about the selling of airports to increase competition

Why does the government want to increase competition generally?

a. promote efficiency - increase consumer surplus.... demand curve is more elastic....

b. encourge the reduction of costs and also prices to compete

c. macro economic benefits - keep out imports, encourage exports; growth; unemployment falls; inflation falls

d. allocation of resources

Strategies to avoid a hostile takeover

There are many strategies here

Poison pill: risky investment

White knight:third party

Pac-man: reverse takeover

Monopoly definition: legally : 25% (Fair Trading Act 1973)

Key ratio is the CONCENTRATION RATIO.

Any mistakes in the above?