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Economics

Economists believe mergers can sometimes achieve greater efficiency than two companies that do not merge. true or false

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 11P

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The Justice Department and the Federal Trade Commission are likely to oppose mergers a. that create a larger firm with economies of scale in a contestable market. b. which will help one of the merging firms out of financial difficulties. c. which threaten to reduce competition. d. that seem likely to increase efficiency.
true or false: a horizontal merger will not be allowed to proceed if it does not create savings in marginal costs, because the total surplus will fall as a result of the merger Please do fast ASAP
Government should regulate mergers between firm's give reason in favor and against this statement
Which of the following would be most in line with how economists believe modern analysis of mergers should be done? Group of answer choices Mergers should never be allowed if the HHI (Herfindahl-Hirschman Index)increases by more than 300. Regulators should use the most narrow definition of a market when evaluating mergers. Regulators should us the most broad definition of the market when evaluating mergers. Regulators should evaluate how the merger will change the way firms act and how this will impact consumers.
If two companies are seeking regulatory approval to merge their respective businesses, which of the following will most likely be the focus of the arguments that they will present in favor of the merger? Group of answer choices, select all that apply: _ The newly created firm will benefit consumers by operating more efficiently. _ The newly created firm is able to take advantage of economies of scale. _ Consumers can purchase better quality goods or services at a lower price.
In view of the empirical evidence, what factors do you think might be responsible for the current trends of increasing size and mergers
All of the following are strategies a firm with market power can adopt to increase its profits over time except: Influencing the regulatory process. Erecting barriers to entry. Setting price equal to the marginal costs of production. Mergers with, and acquisitions of, competing firms.
QUESTION 7 An oligopoly is a market with only a few sellers, each offering a similar or identical product. True False