Holey Doughnuts and Clair's Eclairs want to merge. Each has 2 percent of the local pastry market. It is most likely that
a. the Department of Justice would challenge the merger but the Federal Trade Commission would not
b. the Federal Trade Commission would challenge the merger but the Department of Justice would not
c. the merger will go unchallenged because it will not tend to reduce competition
d. the government will successfully challenge the merger because it is a horizontal merger
e. the government will successfully challenge the merger because it is a vertical merger
C
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Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that
A) the marginal benefit of each additional soft drink falls. B) the opportunity cost of another soft drink increases. C) people's incomes have decreased. D) the price of a soft drink has increased.
According to the BEA, in the second quarter of 2012 federal government spending on goods and services changed by -0.1 percent. This decrease could have been caused by a decrease in spending on
A) national defense. B) Social Security. C) interest payments on the national debt. D) unemployment benefits.