Which of the Following Is Not True Regarding Monopoly Power

question 1

Multiple Choice

Which of the following is not true regarding monopoly power as it relates to acquisitions that reduce competition?

• A) The U.S. Justice Department may challenge a merger if it is not determined to benefit society.
• B) Empirical evidence suggests that increased monopoly power is a significant reason for firms to consider merging.
• C) If monopoly power is measured through an acquisition, all firms in an industry should benefit as the industry's price is increased.
• D) Empirical evidence finds no consistent tendency for share prices of rival firms to rise.

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Definitions:

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Disasters

Sudden catastrophic events that cause significant damage, disruption, and distress, often overwhelming communities and requiring emergency response.

Needs Theory

A conceptual framework that identifies and categorizes the fundamental motivations driving human behavior.

Drive-reduction Theory

A theory of motivation proposing that the presence of a need creates a drive to eliminate or satisfy that need, thereby restoring balance or homeostasis.