If Two Small Perfectly Competitive Firms Merge, the Merged Firm

question 23

Multiple Choice

If two small perfectly competitive firms merge, the merged firm will be:

• A)a price-taker.
• B)a market leader.
• C)a price-discriminator.
• D)an oligopoly.

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Definitions:

Fraudulent

Involving deceit or trickery intended for personal gain or to cause a loss to another party.

Negligent Misstatement

A false statement made carelessly that is relied upon by another, leading to financial loss or injury.

Contract Term

A provision or condition in a contract specifying the rights and duties of the parties involved.

Intentional Misrepresentation

The act of knowingly presenting false information with the intention of deceiving another party.