I will provide all Module 4 documents upon tutor accepting bid.

I will provide all Module 4 documents upon tutor accepting bid.

 

 

 

Directions:

 

 

Please follow the instructions on the syllabus indicating how to complete and turn in this assignment. Note that effort is important here – these are big questions/issues and you should put careful and detailed thought into your answers.

 

 

(5 points) Kroger is a major, national grocery chain that has proposed to merge with another large grocery chain (Albertsons). As you know from this module, the concern of such large mergers is that it will cause inefficiencies in our economy stemming from monopoly power. Please read the following article and describe what you believe are the efficiency trade-offs the surround the decision of whether to allow this merger or not. Finally, if you were in charge of this decision at the Justice Department, would you allow the merger? Why or why not? Hint: be sure to focus on efficiency as defined and described in this module – do not stray into lines of thinking outside of economic efficiency.

https://www.reuters.com/markets/deals/kroger-albertsons-unions-antitrust-experts-urge-ftc-block-merger-letter-2022-11-03/

 

(5 points) We have all been “ripped off” in an economic transaction. A transaction where we have felt powerless and the other party knows this and exploits their power. If we are the buyer, we end up paying a price we know is far higher than their marginal cost and/or the quality and service associated with the purchase is horrible. Foundationally, our problem is that we are dealing with a seller who has monopoly power.

I would like you fully describe a personal economic transaction of this sort. What is the source of the monopoly power in your example, and how was it used? Will this monopoly power last? Why or why not? And, lastly, should there be government intervention to address this? Why or why not? Note: Do NOT do a good search or default to an electric company example or some other textbook case – I want you to come up with your own and unique example – if you grabbed one from the module or from an internet search you will not receive any credit!

 

5 attachments

I will provide all Module 4 documents upon tutor accepting bid.

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