Business, 14.04.2020 17:19 Snowball080717

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

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The Department of Justice and the Federal Trade Commission must define the relevant market when dete...