11ECO Market Concentration

ACCC refers to...

• Australian Competition and Consumer Commission

• Australian Chamber of Commerce and Competition

• Authority to Control Competition and Commerce

• Australian Commission for Consumer Complaints

Individual petrol companies who agree to set a certain price is an example of...

• Cartel

• Collusion

• Predatory pricing

• Exclusive dealing

Market concentration refers to...

• Occurs when a firm grows in size and its average total cost falls as the quantity of output increases

• Imposition by a supplier of conditions on the supply of goods and services that limit the purchaser's freedom to choose alternative suppliers

• A firm gains ownership and control of its existing competitors in order to reduce competition and increase market power.

• The degree to which a small number of firms control a large percentage of a relevant market.

The ACCC may oppose a merger due to the merger resulting in...

• Decreased competition in the market

• Increased competition in the market

• Improved living standards

• A decline in living standards

Firm A increases output from 50 units to 100 units as a result total costs increase from $150 to $200. Identify which is the most correct statement.

• Economies of scale has occured due to average costs for the firm increasing from $0.33 per unit to $0.50 per unit

• Economies of scale has occured due to average costs for the firm decreasing from $0.50 per unit to $0.33 per unit

• Economies of scale has occured due to average costs for the firm increasing from $2 per unit to $3 per unit

• Economies of scale has occured due to average costs for the firm decreasing from $3 per unit to $2 per unit

Which law governs the ACCC?

• Trade Practices Act 1986

• Trade Practices Act 1974

• Trade Producers Act 1986

• Trade Producers Act 1974

Within McDonalds, employees have different roles, e.g. flipping burgers, preparing fires, taking orders, etc. This is an example of...

• Division of labour

• Collusion

• First-mover advantage

• Division of employees

Identify which of the following would be an example of horizontal integration.

• Dominos mergers with uber eats

• Pizza Hut buys out Dominos

• Vodafone takes over Coles

• Pizza Hut purchases Pizza Base Wholesalers

All the of the statements below regarding Red Bull are incorrect except for?

• Red Bull has a minority market share in the energy drink market

• Red Bull does not have the ability to utilise predatory pricing strategies

• Red Bull engages in exclusive dealing arrangements with bars, pubs and cafes.

• Red Bull is often accused of collusion with other energy drink companies.

Which of the following businesses would have experience first mover advantage?

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