Suppose that in an industry, firm X has 50 percent market share, firm Y has 35 percent market share, and firm Z has 10 percent market share. Which of the following mergers is NOT likely to be challenged by the Federal Trade Commission?
A) a merger between firms X and Y
B) a merger between firms Y and Z
C) a merger between firms X and Z
D) Any merger of two firms among those firms is likely to be challenged.
Answer: D
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Suppose you must pay a non-refundable $200 down payment to order a new item. Pick the true statement below
A) The $200 represents a marginal cost before you commit to the down payment. B) The $200 represents a sunk cost after you've committed to the down payment. C) Both A and B are true. D) Neither A nor B are true.
The rules-based monetary policy reads: The money supply will increase 3 percent each year. If the average annual growth rate in Real GDP is 2 percent and velocity increases by 1 percent each year, it follows that
A) the price level will, on average, rise 2 percent a year. B) the price level will rise 2 percent this year. C) in some years the price level will rise by more than in other years. D) in some years the price level may not change at all. E) a, c and d