Chapter 17 Post Quiz
Promoting More Efficient Markets

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Regulation	a. A merger that occurs when two firms at different stages of the production process combine.
	2. Social regulation	b. Will charge each class of customer the fully distributed average cost of the type of service they are purchasing.
	3. Economies of scope	c. Government rules or market incentives designed to control the price, sale, or production decisions of firms.
	4. Zoning regulation	d. Will result in the ideal price setting target for economic efficiency.
	5. Average cost pricing	e. Arise when a number of different products can be produced more efficiently together than apart.
	6. P=MC	f. An antitrust act.
	7. Two-part tariff	g. A merger in which companies in the same industry combine.
	8. Sherman Act	h. Helps to prevent externalities from businesses spilling over onto residents whose homes might otherwise be nearby.
	9. Price discrimination	i. The firm charges a fixed fee to cover the overhead costs and then adds a variable cost to cover the marginal cost associated with producing the good.
	10. Horizontal merger	j. Limited by antitrust laws.
	11. Vertical merger	k. Used to protect the environment along with the health and safety of workers and consumers.
	12. Conglomerate merger	l. A merger that occurs when two unrelated businesses combine.
	13. Increased import competition	m. A reason for the recent decrease in the number of antitrust cases in the United States.