Refer to the Article Summary. A merger between two competitors such as Staples and Office Depot may ultimately be approved by the Department of Justice and the FTC if the two companies can substantiate ________ as a result of the merger.
A) increases in economic efficiency
B) an increase in the HHI to over 1,800
C) increases in revenue for the merged company
D) decreases in marginal revenue for the merged company
Question 2
Refer to Figure 11-13. The lines shown in the diagram are isocost lines. If the price of labor is 50 per unit, what is the price of capital along the isocost CE?
A) 400 per unit B) 100 per unit
C) 25 per unit D) insufficient information to answer question
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