question 4 1 pts price discrimination is a rational strategy for a profit - maximizing firm when firms want…

question 4 1 pts price discrimination is a rational strategy for a profit - maximizing firm when firms want to increase the amount of consumer surplus received by its customers. there is no opportunity for arbitrage across market segments. it is not possible to segment consumers into identifiable markets. it is possible to engage in arbitrage across market segments. question 5 1 pts congress has divided the authority to police mergers between the antitrust division of the u.s. department of justice (ad) and the federal trade commission (ftc). how is this authority divided? the ad establishes the guidelines that are used to evaluate proposed mergers; the ftc uses these guidelines to decide whether a proposed merger will be allowed to take place. both the ad and the ftc are responsible for merger policy. the ad decides whether proposed horizontal mergers will be challenged; the ftc decides whether proposed vertical mergers will be challenged. the ad always renders its opinion on any proposed merger first. if the ad approves the merger, the case then goes to the ftc for final approval. if the ad disallows the merger, the decision stands and the ftc does not become involved.

question 4 1 pts price discrimination is a rational strategy for a profit - maximizing firm when firms want to increase the amount of consumer surplus received by its customers. there is no opportunity for arbitrage across market segments. it is not possible to segment consumers into identifiable markets. it is possible to engage in arbitrage across market segments. question 5 1 pts congress has divided the authority to police mergers between the antitrust division of the u.s. department of justice (ad) and the federal trade commission (ftc). how is this authority divided? the ad establishes the guidelines that are used to evaluate proposed mergers; the ftc uses these guidelines to decide whether a proposed merger will be allowed to take place. both the ad and the ftc are responsible for merger policy. the ad decides whether proposed horizontal mergers will be challenged; the ftc decides whether proposed vertical mergers will be challenged. the ad always renders its opinion on any proposed merger first. if the ad approves the merger, the case then goes to the ftc for final approval. if the ad disallows the merger, the decision stands and the ftc does not become involved.

Answer

Brief Explanations:

For Question 4: Price - discrimination is rational for a profit - maximizing firm when there is no opportunity for arbitrage across market segments. Arbitrage would undermine the firm's ability to charge different prices in different segments. For Question 5: Both the Antitrust Division of the U.S. Department of Justice (AD) and the Federal Trade Commission (FTC) are responsible for merger policy.

Answer:

Question 4: there is no opportunity for arbitrage across market segments. Question 5: Both the AD and the FTC are responsible for merger policy.