The federal government is most likely to oppose
A. the purchase of a firm in danger of bankruptcy by a successful firm.
B. a merger between two firms in a perfectly competitive industry.
C. the purchase of one oligopolist by another in an industry with contestable markets.
D. a merger between two firms in a three-firm industry.
Answer: D
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In an economy without international trade, investment must equal ________ saving.
A. national B. public C. private D. life-cycle
A stockholder ________ an owner of the firm, and a bondholder ________ an owner of the firm
A) might be; is not B) is; is not C) is not; is D) is not; is not E) is; is
Suppose ordinarily half your class would get an A and half would get a B, with A students having a 25% chance of getting an A and B students having a 25% of getting an A. It costs $100 to persuade the instructor to raise a B grade to an A. A student is willing to pay $40 to insure she will get her usual grade and $70 to insure she will get a higher grade than usual. a. If all students buy insurance that guarantees them an A, what is the zero profit price for an insurance company that offers A insurance. b. Will grade insurance be sold in equilibrium? c. Who would buy insurance and at what price if the insurance companies could tell what type of student each student is? d. Is either the result in (b) or (c) efficient?
What will be an ideal response?
Which does NOT cause an industry that might otherwise be competitive to tend toward oligopoly?
A) economies of scale B) barriers to entry C) mergers D) strategic independence