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Unformatted text preview: In the Reunification period, firms with high fixed costs often found that their __AC___ fell as they expanded output. A profit- maximizing monopoly charges a price that is GREATER THAN ITS MC In the late-1800s, some firms created __TRUSTS_______ , which were agreements under which stockholders of various, competing companies turned over their shares to a group that exercised voting control over the companies. Between 1903 and 1904, the total value of combined firms in the US MORE THAN DOUBLED The term "gentlemen's agreement" refers to an agreement between firms about THE PRICE THE FIRMS WOULD CHARGE FOR THEIR PRODUCTS Successful cartels create economic profits for the colluding firms, which can encourage new firms to enter the market. TRUE The horizontal merger wave of 1879-1893 was concentrated in the _CONSUMER GOOD______ industry....
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- Fall '07