A possible advantage of a horizontal merger for the economy is that
A) the merging firms could avoid losses.
B) the merged firm might reap economies of scale which could translate into lower prices.
C) the degree of competition in the industry will be intensified.
D) the government stands to collect more corporate income tax revenue.
Answer: B
You might also like to view...
Briefly describe the most important differences between the market for health care and the market for other goods and services
What will be an ideal response?
Assuming that money is neutral, an increase in the nominal money supply would cause
A) an excess supply for goods. B) an increase in the real money supply. C) a fall in the price level. D) a rise in nominal wages.
Certain factors that are probably important in determining wages are nevertheless difficult to measure. Consequently, labor economists find those factors difficult to incorporate into their studies of labor markets and wages. Those factors include
a. effort and natural ability. b. natural ability and years of experience. c. years of experience and job characteristics. d. race and job characteristics.
In classifying expenditures, which of the following is an illustration of an “object”?
A. Arson investigation B. Fire Department C. Materials and supplies D. Public Safety