Reduced competition through merging of companies will raise social welfare
a. if the social cost from the synergies exceeds the benefit of increased market power.
b. if the benefit from the synergies exceeds the social cost of increased market power.
c. always.
d. never.
b
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The "most favored nation principle" means:
a. that member countries can enter into exclusive favorable agreements with some countries. b. that member countries are barred from forming agreements outside their geographic vicinity. c. that member countries must apply the same low tariffs to all WTO member countries. d. that member countries must apply differential tariffs on imports from non-WTO countries.
The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table. Based on the table, the marginal cost of producing the fourth gallon of ice cream is
A) $2. B) $3. C) $5. D) $8. E) $32.