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Competition, and market concentration, are key themes in antitrust economics. A lack of competition, or excess of concentration, can have anti-competitive effects, lowering the amount of goods available to consumers while raising prices. In the case of mergers, a merger of pure duopoly firms into a single firm is anti-competitive, under the assumptions maintained in Chap. 4, as is a merger of monopolies in industries that produce goods which consumers regard as substitutes. But a merger of monopolies in industries producing complement goods, or vertically linked goods, can be pro-competitive, raising output and lowering price. Sometimes, an increase in market concentration benefits consumers.
KeywordsProduction possibilities Efficiency Fairness Specialization Coordinated production Comparative advantage
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