1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Igoryamba
3 years ago
11

The Department of Justice and the Federal Trade Commission must define the relevant market when determining whether to allow a m

erger. How do economists identify the relevant​ market? The relevant market has been identified if A. a technological advance results in lower​ prices; otherwise, the market is too broadbroad. B. a price increase results in higher​ profits; otherwise, the market is too narrow. C. an increase in output results in a decrease in average​ costs; otherwise, the market is too narrownarrow. D. an increase in profits results in new firms​ entering; otherwise, the market is too broadbroad. E. a price increase results in lower​ sales; otherwise, the market is too narrownarrow.
Business
1 answer:
emmainna [20.7K]3 years ago
6 0

Answer:

The correct answer is letter "B": a price increase results in higher​ profits; otherwise, the market is too narrow.

Explanation:

When firms are interested in acquisitions or mergers they have to determine if the target company is part of a relevant market. The term refers to the competitive conditions that offer the economy where the target company is located. The relevant market also considers the type of product or service the target company offers.

<em>Relevant markets optimal for mergers are those where an increase in prices generates more revenue for firms. If there are too many competitors offering undifferentiated products, the market will not allow organizations to profit from price increases. Those markets, then, are too narrow.</em>

You might be interested in
Jim wants to buy a car, but he’ll probably only need it for a couple of years. He has a short commute to work, so he won’t be pu
jolli1 [7]
I would say bike or bus.
5 0
3 years ago
At its $60 selling price, Atlantic Company has sales of $15,000, variable manufacturing costs of $4,000, fixed manufacturing cos
mash [69]

Answer:

$36

Explanation:

The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price.

Selling price is $60

Contribution margin per unit?

The total sales in dollar value are $15,000, The sales in units equal to

=$15,000 /60

=250 units

Total variable costs will include variable manufacturing cost plus variable selling and administrative costs

=$4000 + $2000

=$6000

variable cost per unit will be the total variable cost divide by units produced

=$6000/250

=$24

Contribution margin per unit = $60- $24

=$36

6 0
3 years ago
The laffer curve makes the point that cutting a very high marginal tax rate can __________ the tax base enough so that tax reven
Ivenika [448]
<span>The laffer curve makes the point that cutting a very high marginal tax rate can raise the tax base enough so that tax revenues actually rise. The Laffer Curve is a theory that was developed by Arthur Laffer. The theory explains the relationship between tax rates and how much tax revue the government creates. </span>
8 0
3 years ago
Which of the following actions can NEGATIVELY impact your credit score?
Fudgin [204]
It would be B hope this helps!
3 0
3 years ago
Read 2 more answers
As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?
shusha [124]

Answer:

12 months

Explanation:

The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that  12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.

After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.

7 0
2 years ago
Read 2 more answers
Other questions:
  • Exercise 4-6 Completing the income statement columns and preparing closing entries LO P1, P2 These partially completed Income St
    14·1 answer
  • The opportunity cost of​ tesla's investment in a new battery factory in nevada is
    11·1 answer
  • The activity that's probably the most important indicator of financial health is the net cash flow from _______ activities
    10·2 answers
  • Nicole is a calendar-year taxpayer who accounts for her business using the cash method. On average, Nicole sends out bills for a
    11·1 answer
  • How can being part of an organization help you get a job?
    13·1 answer
  • Bubba is a shrimp fisherman who could earn $5,000 as a fishing tour guide. Instead, he is a full-time shrimp fisherman. In calcu
    12·1 answer
  • Mwakilembe Co.ltd is a micro business which buys and sell toys on 1 January 2020 the company predicted its annual sales to be 10
    9·1 answer
  • Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for
    6·1 answer
  • Assume that Cane normally produces and sells 62,000 Betas and 82,000 Alphas per year. If Cane discontinues the Beta product line
    6·1 answer
  • Settings in which development occurs, which are influenced by historical, economic, social, and cultural factors, are called ___
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!