According to the Department of Justice's Horizontal Merger Guidelines, a post-merger HHI ________ is considered ________.
A. below 1,000; low resulting in a high likelihood that a merger will be permitted
B. below 1,000; high resulting in high likelihood that a merger will be blocked
C. below 1,800; high resulting in high likelihood that a merger will be blocked
D. above 1,800; low resulting in a high likelihood that a merger will be permitted
Answer: A
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If production of a good produces an external benefit, in order for the marginal social cost to equal the marginal social benefit
A) the good should be taxed. B) permits should be required to purchase the good. C) the good could be subsidized. D) the government needs to take no action.
Social cost is: a. the sum of the cost of externality and private cost
b. the difference between the cost of externality and private cost. c. the product of the cost of externality and private cost. d. the ratio of the cost of externality and private cost.