Horizontal mergers would most likely cause the
a. merged firm to engage in cartel behavior
b. market power of the merged firm to be considerably less than the market power held by both firms before the merger
c. stock value of the two firms to increase
d. formerly perfectly competitive firms to become oligopolistic
e. industry's concentration ratio to increase
E
You might also like to view...
Which of the following will not lead to increase in the marginal revenue product?
A. MPP increases without any changes in the price. B. Price of the product increases without any changes in MPP. C. MPP and price of the product increase. D. MPP remains the same and price of the product falls.
If increasing the admission charge for National Parks increases the National Park Service's total revenue, then the demand for National Park visits is:
A. inelastic. B. elastic. C. perfectly elastic. D. a perfectly horizontal line.
In order to encourage domestic saving, it is necessary to have:
a. a laissez faire economy. b. a balanced fiscal budget. c. a large number of government subsidies. d. a stable system of property rights. e. a highly developed banking system.
Average total cost is
a. the change in cost as output decreases b. the change in cost as output increases c. TC / quantity of output d. MC - TC e. AVC - AFC