Chapter 15, Problem 8QFR

One of the approaches for the Southern Company to comply with the Clean Air Act is to adopt fuel-switching technology. Do you think this strategic flexibility would have value to Southern Companys shareholders? Why?

1. Collusion is an anticompetitive practice that could fall under the criminal code according to the Competition Act. Give three examples of collusive practices (not necessarily reallife examples) and explain why. 2. What are the differences between different types of mergers? Explain why mergers happen?

ANSWER ALL QUESTIONS 1,2 and 3 Sainsbury's-ASDA merger blocked by the regulator (Competition and Markets Authority) (CMA)  1) Do you think the reasons for a merger between ASDA and Sainsbury mentioned in the news are justifiable? Why did the supermarkets want to merge? The deal would have created the UK's biggest supermarket chain, accounting for £1 in every £3 spent on groceries. Sainsbury's and Asda had said the planned tie-up would have cut their costs, allowing them to lower prices for consumers across the UK. Analysts also believed it was designed to help the two supermarkets counter the rise of discounters Aldi and Lidl in the increasingly competitive grocery market. 2) The CMA provides economic justifications to the merger block by regulators in the UK. Do you think the justifications are reasonable? Why was the CMA concerned? But the CMA, which had previously raised concerns about the deal, said the merger would lessen competition at both a national and local level. Sainsbury's…

The result of two firms joining to form a company is known as which of the following?Choose one answer.a. Limited liability company b. Merger c. Conventional corporation d. Acquisition