The typical test applied for merger approval under U.S. antitrust law requires that:
A. quantities produced not fall.
B. prices not rise.
C. aggregate surplus not fall.
D. the merger not be horizontal in nature.
B. prices not rise.
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Empirical evidence shows that the short-run Phillips curve was vertical during the 1950s and 1960s
Indicate whether the statement is true or false
Refer to Figure 23-1. If the economy is at point L, what will happen?
A) Inventories have risen above their desired level, and firms decrease production. B) Inventories have risen above their desired level, and firms increase production. C) Inventories have fallen below their desired level, and firms increase production. D) Inventories have fallen below their desired level, and firms decrease production.
Refer to Figure 7.4. This isoquant exhibits:
A. increasing MRTSLK as we move to the southeast along the isoquant.
B. declining MRTSLK as we move to the northwest along the isoquant.
C. constant MRTSLK as we move along the isoquant.
D. declining MRTSLK as we move to the southeast along the isoquant.
For a linear and upward sloping supply curve, when the consumer has to pay a positive price for the good, the variable cost to the consumer is a
A. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the demand curve. B. four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the supply curve. C. rectangle. D. triangle.