A merger is unlikely to be approved if
A)there are fewer than 6 firms in a market.
B)it prevents or substantially lessens competition.
C)the good produced in the market has been deemed a necessity.
D)the industry is government regulated.
E)the merged firms economic profit increases.

Question

Quizplus · Accepted Answer

The main objective of antitrust laws is to promote competition in the market. Therefore, if a merger prevents or substantially lessens competition, it is unlikely to be approved. The other options do not necessarily make a merger unlikely to be approved.

A Merger Is Unlikely to Be Approved If