A possible advantage of a horizontal merger for the economy is that
A) the merging firms could avoid losses.
B) the merged firm might reap economies of scale which could translate into lower prices.
C) the degree of competition in the industry will be intensified.
D) the government stands to collect more corporate income tax revenue.
Answer: B
Economics
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Taxes:
A. may benefit many of the consumers in the market. B. are sometimes used to correct market failures. C. are sometimes used to transfer surplus from producers to consumers. D. are sometimes used to transfer surplus from consumers to producers.
Economics
Which of the following statements is normative?
What will be an ideal response?
Economics