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Unformatted text preview: forces its customers to buy another product only from it. Examples: IBM machines and computer cards Auto manufacturers and car radios 17 Mergers Horizontal mergers: Firms in same business merge. Generally, illegal if merged firm has 12% or more market share. Example: Bethlehem Steel and Youngston Shares: 16.3% + 4.6% = nearly 21% 21 Price Discrimination Morton Salt Grocery A Grocery B Grocery C $1.50/case $1.60/case $1.60/case Morton Salt sells to grocery A at a lower price than to other groceries. Grocery A has an advantage that lessens competiton. Note: Loss of competiton does not occur in industry of culprit firm....
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This note was uploaded on 07/25/2011 for the course ECON 1 taught by Professor Martholney during the Fall '08 term at Berkeley.
- Fall '08