The federal government is most likely to oppose
a. the purchase of a firm in danger of bankruptcy by a successful firm.
b. a merger between two firms in a perfectly competitive industry.
c. the purchase of one oligopolist by another in an industry with contestable markets.
d. a merger between two firms in a three-firm industry.
d
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Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP falls?
A) AD did not shift and SRAS shifted to the left. B) AD shifted to the right by less than SRAS. C) SRAS shifted to the right by more than LRAS. D) AD shifted to the right by more than SRAS.
If tax policies become less favorable, then
A. The AD curve will shift to the left. B. The AD curve will shift to the right. C. There will be a movement to the right along the AD curve. D. The AD curve will not be affected.