All of the following are methods of rationing goods EXCEPT

Deterring entry might require a firm to

A) price their product closer to the competitive price than to the monopoly price. B) price their product closer to the monopoly price than to the competitive price. C) drop output almost to zero to show the consumers "who's boss." D) drop price almost to zero to get price below marginal cost.

Holey Doughnuts and Clair's Eclairs want to merge. Each has 2 percent of the local pastry market. It is most likely that

a. the Department of Justice would challenge the merger but the Federal Trade Commission would not b. the Federal Trade Commission would challenge the merger but the Department of Justice would not c. the merger will go unchallenged because it will not tend to reduce competition d. the government will successfully challenge the merger because it is a horizontal merger e. the government will successfully challenge the merger because it is a vertical merger