When two U.S. firms announce a merger, and at least one of them meets the legal level of minimum sales, they must notify the:
a. Federal Trade Commission.
b. Consumer Financial Protection Bureau.
c. Better Business Bureau.
d. Department of Commerce.
a. Federal Trade Commission.
Because a merger combines two firms into one, it can reduce the extent of competition among firms. Therefore, when two U.S. firms announce a merger or acquisition where at least one of the firms is above a minimum level of sales, or certain other conditions are met, they are required under law to notify the U.S. Federal Trade Commission (FTC).
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The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the consumer surplus?
A) area A + area B + area C B) area A + area F C) area C + area D + area E + area G D) area A E) area F
Refer to the figure above. What is the producer surplus before Lithasia opens up to free trade?
A) $6 B) $12 C) $18 D) $24
Price makers always have to deal with ______.
a. a segmented demand curve b. a horizontal demand curve c. an upward sloping demand curve d. a downward sloping demand curve
Suppose Country A produces two goods, Good X and Good Y. Production of Good X involves an intensive use of skilled workers. Good Y is a relatively capital-intensive good. If the country experiences a wave of immigration of skilled workers, capital remaining unchanged, the Rybczynski theorem predicts that:
A. the production of both goods will increase, but increase in Good X will be much higher than increase in Good Y. B. the production of Good Y will contract. C. the production of Good X will contract. D. the production of both the goods will expand in the same proportion.