Caprica corporation is a large conglomerate that has interests in various industries such as mining, oil refining, chemicals, and consumer goods. in the chemical industry, caprica produces and sells kalocin, a substance used in the production of most analgesic drugs. caprica recently acquired the only firm that controls the extraction of a key raw material used to produce kalocin. jane harris, an industry expert, expects the total surplus in the domestic market for kalocin to fall following this acquisition. her colleague, brian hall, disagrees. he feels that the acquisition will in fact increase efficiency in the market. which of the following, if true, will strengthen brian's argument?
0 a. ob. due to newly imposed export restrictions, there is a surplus in the market for analgesic drugs. caprica's cost structure has changed in such a way that its average cost is now declining in the entire range of the market.
o c. the gain in net benefit accruing to caprica is lower than the loss in net benefit accruing to drug manufacturers 0 d.
oe. who buy kalocin. caprica corporation also acquired boche inc., a drug manufacturing company. drug manufacturers, who are now facing a shortage of kalocin, have filed a complaint with antitrust authorities