Suppose that in an industry, firm X has 50 percent market share, firm Y has 35 percent market share, and firm Z has 10 percent market share. Which of the following mergers is NOT likely to be challenged by the Federal Trade Commission?
A. a merger between firms X and Z
B. a merger between firms Y and Z
C. a merger between firms X and Y
D. Any merger of two firms among those firms is likely to be challenged.
Answer: D
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When the Fed ________, the quantity of banks' reserves decreases
A) hikes taxes B) buys government securities C) lowers the required reserve ratio D) sells government securities E) raises the required reserve ratio
In the textual example, Muhammad Yunus was highly successful in his use of applying social incentives through group responsibility in order to maximize loan repayment rates. This success created an incentive for other banks to:
A. offer similar loans to the poor. B. go out of business. C. seek government action to ban group responsibility lending. D. avoid catering to a high risk group.
Okun's Law states that the ________ decreases about 1 percentage point for every 3% increase in ________.
A. GDP; the inflation rate B. inflation rate; the unemployment rate C. inflation rate; GDP D. unemployment rate; GDP
Dryden Press can produce 10,000 textbooks using 10 machines and 100 workers or using 5 machines and 300 workers. It can produce 20,000 textbooks using 10 machines and 300 workers or 5 machines and 600 workers. Construct a two-dimensional contour-type graph to show the relationship between the output of textbooks and the labor and machinery inputs.
What will be an ideal response?