A situation in which a private cost diverges from a social cost is
A) internal costs.
B) an externality.
C) an internality.
D) a transactions cost.
B
Economics
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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.
Economics
Why would precommitment contracts, licenses, learning curve effects, and brand advantages protect an established corporation from new competitors?
What will be an ideal response?
Economics