The U.S. antitrust enforcers determine whether a merger violates antitrust laws by examining
A. both the size of the market after the merger and the profits of the mergers.
B. only the resulting change in the HHI but not the level of HHI after the merger.
C. both the resulting change in the HHI and the level of post-merger HHI.
D. whether the mergers are monopolies before they merge.
Answer: C
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When a bank issues a checkable deposit and loans the funds out to a business, it has transformed
A) a financial asset for a saver into a liability for a borrower. B) a financial liability for a saver into a financial asset for a borrower. C) a short-term liability to a borrower into a long-term asset to a saver. D) one liability into another liability.
The market structure that is associated with big business in developed economies is
a. perfect competition. b. monopolistic competition. c. monopoly. d. oligopoly.
Compared with a normal monopolist, an effective price-discriminating monopolist produces a:
A. smaller output at a lower profit. B. smaller output but at a larger profit. C. larger output but at a lower profit. D. larger output at a larger profit.
Suppose consumers save 5 percent of their incomes. If the government collects 100 dollars in taxes from each taxpayer, private saving will ________ per taxpayer.
A. increase by $105 B. decrease by $95 C. decrease by $5 D. decrease by 95 cents