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:

Contrast

The state of being strikingly different from something else in juxtaposition or close association.

Compares and Contrasts

The act of identifying similarities and differences between two or more entities.

Contrast Paragraph

A section of writing that highlights differences between two or more subjects, ideas, or items.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive" finding in hypothesis testing.