context for micro

Question 1

mergers and acquisitions

Answer 1

Disney and Pixar
Quaker and Snapple (FAILED. quaker made gatorade and hoped to make Snapple just as successful)
Vodafone and Mannesmann

Question 2

monopolistic competition

Answer 2

restaurants (60% year on year growth for the UK restaurant industry)

hair salons (73% increase in businesses since 2014)

Question 3

Oligopoly

Answer 3

car industry (General Motors, Ford and Toyota)
supermarket industry (Tesco, Sainsbury’s, Asda)
airline industry (British Airways, easyJet, Loganair)

Question 4

Monopoly

Answer 4

google (70% of market share)
Microsoft (75% of marketshare)
Amazon (45% of the UK’s e-commerce market)

Question 5

Natural Monopoly

Answer 5

TFL (£129 billion sunk costs), Thames Water

Question 6

Monopsony

Answer 6

NHS controls over 90% of the UK healthcare market
Tesco (27.5% of the market has monopsony power over suppliers)

Question 7

Contestable

Answer 7

Parcel delivery service

Question 8

Utility

Answer 8

Equinor -oil- (energy firm using ‘rocket’ and ‘feather’ pricing)
Octopus energy (absorbed £150 million in costs to protect consumers, energy market was liberalised but many new firms collapsed due to OFGEMs price cap and 250% increase in wholesale energy costs)

Question 9

Intervention

Answer 9

Sainsbury’s and Asda merger in 2019 was blocked
Fox and sky merger in 2016

Question 10

Collusive behaviour

Answer 10

RBS and Barclays - Bank loan collusion