In the context of competition policy for digital markets, 'Killer Acquisitions' refer to: MCQ with Answer and Explanation

In the context of competition policy for digital markets, 'Killer Acquisitions' refer to:
A. Only horizontal mergers among equals
B. Acquisitions that always increase innovation
C. Acquisitions of innovative start-ups by dominant incumbents with the aim of discontinuing the target’s innovation to protect the incumbent’s market position
D. Only conglomerate mergers without any competitive effect
Answer: Option C
Solution (By JKSSB Mock Tests)
Killer acquisitions occur when a dominant firm acquires a potential competitor primarily to eliminate the competitive threat posed by the target’s product or technology rather than to develop it.

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Practice More Economy Set 1 Questions

Question #1
TRIPS is an agreement of the WTO dealing with:
A. trade in services
B. agricultural subsidies
C. anti-dumping measures
D. intellectual property rights

Correct Answer: Option D


Explanation:
TRIPS deals with Trade-Related Aspects of Intellectual Property Rights.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Contestability' in digital markets refers to:
A. The ease with which new entrants can challenge incumbent platforms despite the presence of network effects and data advantages
B. Only the number of existing competitors
C. The complete impossibility of entry
D. Only the size of the incumbent

Correct Answer: Option A


Explanation:
Contestability measures the extent to which potential competition can discipline incumbents; in digital markets it is often impaired by network effects, data advantages and switching costs.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'capability approach' to development was propounded by:
A. W.W. Rostow
B. Arthur Lewis
C. Amartya Sen
D. Milton Friedman

Correct Answer: Option C


Explanation:
Amartya Sen propounded the capability approach to development.

This question belongs to: Economy GK Economy Set 1