A Possible Advantage of a Horizontal Merger for the Economy

question 158

Multiple Choice

A possible advantage of a horizontal merger for the economy is that

• A)the merging firms could avoid losses.
• B)the merged firm might reap economies of scale which could translate into lower prices.
• C)the degree of competition in the industry will be intensified.
• D)the government stands to collect more corporate income tax revenue.

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Definitions:

Lie Detector

A device used to assess whether a person is telling the truth by measuring physiological responses such as blood pressure, pulse, respiration, and skin conductivity.

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The degree to which experimental procedures and settings are engaging and impactful to participants, affecting the generalizability of findings.

T Tests

A statistical method used to determine if there is a significant difference between the means of two groups.

Psychological Research

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