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Which of the Following Is Not True Regarding Monopoly Power

Question 35

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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