Question
Mergers harm society. A. Maybe. It depends on whether the effect on prices is larger from reducing competition or increasing efficiency. B. True. Total surplus
Mergers harm society.
A.
Maybe. It depends on whether the effect on prices is larger from reducing competition or increasing efficiency.
B.
True. Total surplus is reduced when firms merge.
C.
False. Firms gain economies of scale and pass the price savings on to their customers.
D.
True. Firms merge to avoid antitrust laws and increase their prices.
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Integrated Accounting For Windows
Authors: Dale A. Klooster, Warren Allen
5th Edition
0324312490, 9780324312492
