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Author Question: A merger of two price-making firms producing identical products will (Read 102 times)

jc611

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Question 1

Which of the following statements is FALSE?
◦ Mergers may increase total profit.
◦ Mergers may enable faster growth than internal expansion.
◦ Mergers may increase market power.
◦ Mergers do not require the agreement of both firms.

Question 2

A merger of two price-making firms producing identical products will
◦ make the new firm's demand curve more elastic than the unmerged firms'.
◦ increase the level of competition in the market.
◦ lower the 5-firm concentration ratio.
◦ make the new firm's demand curve less elastic than the unmerged firms'.


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Marked as best answer by jc611 on May 25, 2020

soda0602

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jc611

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Reply 2 on: May 25, 2020
Excellent


FergA

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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