Holey Doughnuts and Clair's Eclairs want to merge. Each has a 2 percent share in the local pastry market. It is most likely that:
A) the Department of Justice will challenge the merger but the Federal Trade Commission will not.
B) the Federal Trade Commission will challenge the merger but the Department of Justice will 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.
Correct Answer:
Verified
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