A horizontal merger takes place when
A. a firm acquires a competitor.
B. similar firms agree to compete.
C. firms in different industries merge.
D. a firm diversifies by merging with a foreign firm.
A. a firm acquires a competitor.
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A Nash equilibrium is
A) reached when an oligopoly's market demand and supply intersect. B) reached when each player chooses the best strategy for himself and for the group. C) an equilibrium comprising non-dominant strategies only. D) reached when each player chooses the best strategy for himself, given the other strategies chosen by the other players in the group.
Suppose that Christine values a baseball hat at $20, and Mark values one at $18 . The pretax price of a baseball hat is $14 . The government imposes a $5 tax on baseball hats, which raises the price to $19 . What is the deadweight loss from the tax?
Maria buys a cup of coffee every day after her economics class. The first cup of coffee always tastes wonderful. The second does not taste quite as good as the first. The third does not taste quite as good as the second. Maria is experiencing
A) irrational behavior. B) the law of diminishing marginal utility. C) the income effect. D) the substitution effect.
The tax multiplier is
A. the MPC multiplied by the MPS. B. the difference in taxes multiplied by the change in the equilibrium level of output. C. the ratio of the change in the equilibrium level of output to the change in taxes. D. the ratio of the change in taxes to the change in the equilibrium level of output.