Which of the arguments Staples and Office Depot made in defense of their proposed merger would be least defensible on economic grounds?
A) There would be substantial economies of scale.
B) The two firms were in competition with all other office supply stores, not just office supply superstores.
C) The history of low pricing by the two stores meant that they would not raise prices in the future after they merged.
D) Entry into the office supply market is relatively easy.
C
You might also like to view...
Refer to Table 19-8. Suppose that a simple economy produces only four goods and services: sweaters, CDs, sugar, and soft drinks
Assume one half of the sugar is used in making the soft drinks and the other half of the sugar is purchased by households. Calculate nominal GDP for this simple economy.
Full employment is the rate of employment that results when:
A. all the labor resources of the economy are employed full time. B. cyclical unemployment has reached its maximum. C. everybody who wants a job can find one. D. only frictional and structural unemployment are present.