Which of the Following Statements Regarding Monopoly Mergers Is FALSE

question 20

Multiple Choice

Which of the following statements regarding monopoly mergers is FALSE?

• A)It is often argued that merging with or acquiring a major rival enables a firm to substantially reduce competition within the industry and thereby increase profits.
• B)Financial researchers have found that the share prices of other firms in the same industry did not significantly increase following the announcement of a merger within the industry.
• C)While only the merging company benefits when competition is reduced,all companies in an industry pay the associated costs.
• D)Society,as a whole,bears the cost of monopoly strategies,so most countries have antitrust laws that limit such activity.

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Definitions:

Continuous Reinforcement

A learning schedule in which every correct response is followed by a reward, facilitating rapid learning.

Scheduled Reinforcement

A strategy in behavior modification that involves delivering reinforcement according to a predetermined schedule.

Intermittent Reinforcement

A conditioning schedule in which a reward or punishment (reinforcement) is not administered every time the desired response is performed.

Intrinsic Interest

Motivation driven by an interest or enjoyment in the task itself, rather than external pressures or rewards.