One Successful Defense That Some Firms Have Recently Used to Argue

question 428

Multiple Choice

One successful defense that some firms have recently used to argue that a merger should be allowed is called:

• A) the monopoly-buyer defense
• B) the infant-industry defense
• C) the aggregate-firm defense
• D) the foreign-competition defense
• E) none of the other choices

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Definitions:

Externalities

Costs or benefits of a market activity borne by a third party; can be negative (costs) or positive (benefits).

Private Solutions

Solutions derived from individual or corporate initiatives without direct government intervention or subsidies.

Interested Parties

Individuals or groups that have a stake or interest in the outcome of a project, decision, or endeavor.

Benefit

An advantage, improvement, or gain received from a product or service, often considered in decision-making or evaluations of welfare.