Author Question: Refer to the scenario above. If the government enforces a ban on Firm B, and asks Firm A to carry ... (Read 109 times)

lilldybug07 · **on:** Jun 29, 2018

Refer to the scenario above. If the government enforces a ban on Firm B, and asks Firm A to carry out all the production:

A) Firm A's marginal cost is likely to decrease, but its average cost is likely to increase.
B) Firm A's marginal cost and average cost are likely to decrease.
C) Firm A's marginal cost is likely to increase, but its average cost is likely to decrease.
D) Firm A's marginal cost and average cost are likely to increase.

Question 2

An example of a horizontal merger would be a merger between firms

A) approximately the same size.
B) growing at approximately the same rate.
C) located in the same geographic area.
D) selling approximately the same products.
E) supplying one another with inputs.