Reduced Competition Through Merging of Companies Will Raise Social Welfare

question 210

Multiple Choice

Reduced competition through merging of companies will raise social welfare

• A)if the social cost from the synergies exceeds the benefit of increased market power.
• B)if the benefit from the synergies exceeds the social cost of increased market power.
• C)always.
• D)never.

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Definitions:

Social Responsibility Audit

A measure of an organization's performance in various areas of social responsibility.

Systematic Assessment

An organized evaluation process to systematically analyze and review something in detail.

Corporate Social Responsibility

The practice by companies to act ethically and contribute to economic development, work life quality, local community, and society at large in a sustainable manner.

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled.