1. A firm has the incentive to cheat on a cartel agreement only when it fears that other cartel members will also cheat. 

2. (20 points) The following questions refer to the accompanying diagram, which shows the effects of a horizontal merger. Before the merger, the firm behaves competitively producing Q0 and charging P0. The merger lowers the firm’s marginal cost and gives the firm enough market power to switch to the monopoly equilibrium. 

 a) What is the consumer surplus and producer surplus before the merger? 

b) What is the consumer surplus and producer surplus after the merger? 

c) Provide two possible mechanisms of how the merger may affect the social gain. 

• Define and discuss the following elements of web analytics: Goals, events, and key performance indicators (KPI). Provide a couple examples of each. Do some research on Google Analytics and describe how companies are utilizing analytics to increase business and retain customers.  Finally, offer a critical evaluation of where you see this reliance on data going in the future. 

Paper Guidelines

• The paper should be 3-4 pages in length, in your own words, properly cite any outside resources. 
• 1″ margins and Times Roman Font, 12-point, or something comparable
• Use at least 2 sources, other than the textbooks, to strengthen your arguments, points, etc.