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:

Standard Stimulus

A specific, unchanging stimulus used as a basis for comparison in experimental investigations.

Jnd

Stands for Just Noticeable Difference, the minimal change in a stimulus that can just barely be detected by an organism.

Weber Fraction

A concept in psychophysics that describes the proportionate relationship between the magnitude of a physical stimulus and its perceptible increment needed to detect a difference.

Psychological Magnitude

The perceived size, intensity, or importance of a psychological process or stimulus, often related to how individuals assess and experience various psychological phenomena.