Author Question: The economists of the Federal Trade Commission suggested rejection of Coke's merger with Dr. Pepper ... (Read 24 times)

renzo156 · **on:** Jun 30, 2018

The economists of the Federal Trade Commission suggested rejection of Coke's merger with Dr. Pepper as it could:
a. increase overall competition in the soft drinks industry.
b. lower Coke's share in the carbonated and soft drinks market.
c. reduce the profitability of the entire soft drinks industry.
d. allow Coke to profitably raise its prices by 5 to 10 percent.

Question 2

In the long run, a perfectly competitive firm will produce:
a. in the upward-sloping portion of its LRAC curve.
b. where P = minimum AVC.
c. in the downward-sloping portion of its LRAC curve.
d. where P is greater than minimum ATC.
e. where P = minimum ATC.