When Interstate Bakeries tried to buy the maker of Wonder Bread,
A) the government concluded that the merger would not significantly affect the price of bread.
B) the two brands of bread were determined to be close substitutes.
C) the Federal Trade Commission believed that the merger was a good idea because the combined firm would face lower costs and the cost savings could be passed to consumers in the form of lower prices.
D) the government concluded that the merger would reduce tax receipts paid to state governments, and therefore blocked the merger attempt.

Question

Quizplus · Accepted Answer

The government likely determined that the two brands were close substitutes, which could lead to reduced competition and potentially higher prices for consumers, thus raising antitrust concerns.

When Interstate Bakeries Tried to Buy the Maker of Wonder