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

Question

Quizplus · Accepted Answer

A merger between two companies with such a small market share is unlikely to significantly reduce competition and hence is unlikely to be challenged by either the Federal Trade Commission or the Department of Justice.

Holey Doughnuts and Clair's Eclairs Want to Merge