Mergers harm society. A) True. Firms merge to avoid antitrust laws an
Mergers harm society.
A) True. Firms merge to avoid antitrust laws and increase their prices.
B) Maybe. It depends on whether the effect on prices is larger from reducing competition or increasing efficiency.
C) False. Firms gain economies of scale and pass the price savings on to their customers.
D) True. Total surplus is reduced when firms merge.
ANSWER
B
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.