Which of the arguments Staples and Office Depot made in defense of their proposed merger would be least defensible on economic grounds?
A) There would be substantial economies of scale.
B) The two firms were in competition with all other office supply stores, not just office supply superstores.
C) The history of low pricing by the two stores meant that they would not raise prices in the future after they merged.
D) Entry into the office supply market is relatively easy.
C
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At the current point of production on a nation's production possibilities frontier, the marginal benefit of a slice of pizza is 500 tacos per slice of pizza while the marginal cost of producing a slice of pizza is 750 tacos per slice of pizza
To be allocatively efficient, what should be done?
Census data on the income distribution among families in the United States in recent years show
a. a rising share earned by the top fifth and a declining share earned by the bottom fifth b. a rising share earned by the bottom fifth and a declining share earned by the top fifth c. both the share earned by the top fifth and the share earned by the bottom fifth rising d. both the share earned by the top fifth and the share earned by the bottom fifth falling e. falling total income in the top fifth
A rapidly falling stock price would most likely trigger all of the following except:
A. massive sales of the stock. B. a flood of margin calls. C. the price to be pushed down even more. D. a massive amount of purchases.
How has the European Union differed from the United States in the treatment of a monopoly? Consider the treatment of Microsoft
What will be an ideal response?