When a firm is operating at its minimum efficient scale, its short-run average total cost of production is minimized

An increase in the tax wedge associated with a given economic activity will decrease the level of that activity

Indicate whether the statement is true or false

In 1997 the Federal Trade Commission was granted a preliminary injunction on a proposed merger between Staples and Office Depot

The FTC was able to convince the federal district court that allowing the merger would create the potential for anticompetitive prices since it would give the newly merged company a 75% market share and would only leave Office Max as the remaining office supply superstore. Critically evaluate the FTC's use of "office supply superstores" as the relevant market.