When two _____ monopolists merge, one division of the newly merged company will transfer its output to another division at its actual cost, instead of its profit maximizing price.
A)price discriminating
B)natural
C)output rationing
D)successive

Question

Quizplus · Accepted Answer

When two successive monopolists merge, the internal transfer of goods or services between the divisions of the newly merged company typically occurs at the actual cost rather than at a profit-maximizing price. This is because the merged entity seeks to optimize overall profits across the entire process rather than maximizing profits at each individual stage.

When Two _____ Monopolists Merge, One Division of the Newly