Government Intervention

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• D

• A

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• D

• A

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• D

• A

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• A

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• A

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• A

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Pick 2 correct answers

• A

• B

• C

• D

What can competition authorities force firms to do who want to merge (pick two)

• Sell of assets of the new and existing firms

• Force shareholders to sell their shares

• Block the merger entirely

• Decide what the firm must produce after the merger

Where might the government force a monopoly to price in the diagram (what would the output end up as)?

• 0A

• 0B

• 0C