Explain the new guidelines used by the Department of Justice and the Federal Trade Commission for evaluating proposed mergers.
What will be an ideal response?
Companies involved in a merger are allowed to present evidence that the merger will reduce costs and lead to greater economic efficiency. The Department of Justice and the Federal Trade Commission also consider the effect the merger will have on market competition, and then weigh the increase in efficiency against the potential anticompetitive effects of the merger. If the anticompetitive effects of the merger outweigh the potential for greater efficiency, then the government will block the merger.
You might also like to view...
A firm is employing capital and labor such that the marginal product of capital is 30 and the marginal product of labor is 10
If the price of a unit of capital is $50 and the price of a unit of labor is $10, is the firm minimizing its costs? If not, can you recommend a change for the firm to make in its relative amounts of labor and capital used? Explain.
The interest rate on seasonal credit equals
A) the federal funds rate. B) the primary credit rate. C) the secondary credit rate. D) an average of the federal funds rate and rates on certificates of deposits.
Residential construction in the form of homes and apartment buildings are classified as consumption goods
Indicate whether the statement is true or false
Which combination of signals is indicative that Fed policy is restrictive and that a shift to a more expansionary policy is in order?
a. Commodity prices are falling, and the dollar is appreciating. b. Commodity prices are rising, and the dollar is appreciating. c. Commodity prices are rising, and the dollar is depreciating. d. Commodity prices are falling, and the dollar is depreciating.