Market power in the United States causes a huge loss of economic ...

[tichca]

Market power in the United States causes a huge loss of economic efficiency.
 
  Indicate whether the statement is true or false

Question 2

Refer to Figure 14-2. If the government delays Gigacom's entry and Xenophone moves first, what is the likely outcome in the market?
 
  A) Xenophone offers internet service via cable line and earns a profit of 4 million while Gigacom offers DSL internet service and earns a profit of 4.5 million.
  B) Both offer internet service via cable line; Xenophone earns a profit of 6 million and Gigacom earns a profit of 9 million.
  C) Both offer DSL internet service; Xenophone earns a profit of 8 million and Gigacom earns a profit of 7 million.
  D) Xenophone offers DSL internet service and earns a profit of 5 million while Gigacom offer internet service via cable line and earns a profit of 6.5 million.

[Ksh22]

Answer to Question 1

FALSE

Answer to Question 2

C