Recall the Application about the 1998 merger between Pennzoil and Quaker State to answer the following question(s). The merger resulted in a company with a market share of 38 percent: 29 percent from Pennzoil and 9 percent from Quaker State.Recall the Application. A recent study concluded that following the merger between Pennzoil and Quaker State, the new company ________ the price of Pennzoil products and ________ the price of Quaker State products.
A. increased; increased
B. decreased; increased
C. increased; did not change
D. did not change; increased
Answer: D
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Which of the following is a result of a market economy?
A) voluntary exchange B) an equal income distribution C) agreement on equity D) environmental protection
If the economy is in an inflationary gap and the government attempts to balance the budget, the effect will be to
A. counteract inflation. B. reduce the trade deficit. C. continue inflationary pressures. D. increase unemployment.
A regulation that sets the lowest price at which it is legal to trade a good is a
A) search ceiling. B) price floor. C) production ceiling. D) price ceiling. E) subsidy.
A retail store cuts the prices of the products it sells to force its competitor to leave the market. This is prohibited by the
A. Sherman Act. B. Aldrich Act. C. FTC Act. D. Robinson-Patman Act.