Suppose that in an industry, firm X has 50 percent market share, firm Y has 35 percent market share, and firm Z has 10 percent market share. Which of the following mergers is NOT likely to be challenged by the Federal Trade Commission?
A. a merger between firms X and Z
B. a merger between firms Y and Z
C. a merger between firms X and Y
D. Any merger of two firms among those firms is likely to be challenged.
Answer: D
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The table illustrates the market for Internet service. What is the market price of Internet service? If the government taxes Internet service $15 a month, what is the price the buyer pays?
What is the price the seller rece-ives? Does the buyer or seller pay more of the tax?
Which of the following is not an advantage of cost-plus pricing?
A) If a firm is selling multiple products, it ensures that the firm's prices will cover costs that are difficult to assign to one product. B) It ensures that the firm will maximize its profits. C) It is easy to calculate. D) It requires little information.