A possible advantage of a horizontal merger for the economy is that

A) the government stands to collect more corporate income tax revenue.
B) the merged firm might reap economies of scale which could translate into lower prices.
C) the merging firms could avoid losses.
D) the degree of competition in the industry will be intensified.

B

Economics

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A perfectly inelastic supply curve

a. cannot exist b. is horizontal c. has an elasticity of 0 d. has an elasticity of 1 e. is vertical

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