Reference no: EM131311398

1. Give examples of mergers of the vertical, horizontal and conglomerate types. Use your own examples and explain why in each case. In what situations would a merger be a good idea?

2. How are the natural monopolies different than the regular monopolies? Should there really be this difference?

3. If there is a merger between 2nd and 4th largest firms, with the following market shares: 1st: 20%, 2nd: 10%, 3rd: 5% and 4th: 4%. Should the merger be allowed based on the Herfindhal Index? Why?

4. What should the role of the government in terms of the Internet taxation and Internet content? Based on which of the roles of government? The Internet Taxation issue is that if you buy products from online sellers than you may not pay sales taxes, but if you buy the same product from a regular store, you do pay sales taxes.

5. Why is the cost per unit continuing to go down for the natural monopoly? Why are the fixed costs so high for the company?

6. How does a natural monopoly become regulated? What is the way that the pricing should take place for the monopoly? How much profit should be allowed to be made?

7. Are mergers helping consumers or hurting the consumers in terms of prices, quality, service and new products? Pick one industry and examine this question, using that industry.

8. What are the three types of mergers that firms can do? Classify the following possible mergers between Starbucks and coffee growers, Bank of America and Fleet Bank, Microsoft and Steel company, Home Depot and Lowe's, into one of the three types. Explain why in each merger case also.