The U.S. antitrust enforcers will likely block a merger if
A) the merging firms already earn excessive profits.
B) the merging firms are in different markets.
C) the merger will substantially increase market power.
D) the degree of concentration declines as a result of the merger.
C
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The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from the 10,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Which of the following countries imposes significant tariffs on its agricultural exports?
A) Argentina B) The U.S. C) Canada D) France.
When price decreases, consumer surplus
a. increases b. remains constant c. decreases d. becomes negative e. may increase or decrease