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Principles of Microeconomics

7th Edition
N. Gregory Mankiw
ISBN: 9781305156050

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BuyFindarrow_forward

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
ISBN: 9781305156050
Textbook Problem

What gives the government the power to regulate mergers between firms? Give a good reason and a bad reason (from the peispective of society’s welfare) that two firms might want to merge.

To determine
The power of government to regulate the merger of a firm to prevent monopoly.

Explanation

The government uses the anti-trust law to regulate the mergers between firms and prevent the monopoly situations. If the firms want to merge to increase the operati...

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