Holding everything else constant, government approval of horizontal mergers is more likely to be granted if the "market" that firms are in are broadly defined rather than narrowly defined
Indicate whether the statement is true or false
TRUE
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Vertical contracts can also be seen as
a. An increase in coordination between firms producing complementary goods b. An increase in competition among firms producing complementary goods c. An increase in coordination between firms producing substitute goods d. An increase in competition between firms producing substitute goods
There are 10,000 families in a neighborhood that are affected by noise pollution from a local factory. The noise could be reduced if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. Since there are so many families, they fail to come to a resolution to which they will all agree. This outcome is an example of the
A. drop-in-the-bucket problem. B. collective action problem (that arises when there are too many parties involved). C. Coase theorem. D. free-rider problem.
All of the following are example of entry barriers, except
a. Government protection through patents or licensing requirements b. Strong brands c. Low capital requirements for entry d. Lower costs driven by economies of scale
The economic behavior of government is constrained by
a. limited budgets b. the absence of prices on most government output c. moral philosophy of the community d. low voter participation rates e. political self interest