A Merger Is Unlikely to Be Approved If _______

question 37

Multiple Choice

A merger is unlikely to be approved if _______.

• A) it would or would be likely to substantially lessen competition
• B) there are fewer than 6 firms in a market
• C) the industry is government regulated
• D) the good produced in the market has been deemed a necessity

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Definitions:

Graph

A diagram representing data visually, using lines, bars, or other symbols.

Implicit Cost

Refers to the opportunity costs that are not directly paid for in money but represent the loss of value from using resources for a particular venture instead of their best alternative use.

Explicit Cost

Direct, out-of-pocket payments for goods or services used in the production of a product or offering of a service.

Sole Proprietor

An individual who owns and operates a business alone, bearing all the responsibilities and benefits of the business.