Which of the following would be least likely to lead the Justice Department and the FTC to block a proposed horizontal merger?
A) A finding that the resulting firm might be able to unilaterally affect price and output.
B) A finding that the potential for entry into the market by new firms would be adversely affected.
C) A finding that the potential for coordination among sellers in the market would be enhanced.
D) A finding that resulting cost savings and efficiencies would offset any increase in market power.
D
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Suppose a 4 percent increase in price results in a 2 percent increase in the quantity supplied of a good. Calculate the price elasticity of supply and characterize the product
A) 2; The product is elastic. B) 0.5; The product is inelastic. C) 0.2; The product is inelastic. D) 50%; The product is inelastic.
In the short run after a country engages in free trade, wages and land rents can be expected to rise in the expanding sector of the country.
Answer the following statement true (T) or false (F)