The diagram below shows the demand and supply curves in a perfectly competitive market.
FIGURE 12- 5
-In Canada,a significant challenge for the Competition Bureau when reviewing a possible merger between firms in a concentrated industry is to
A)impose effective entry barriers to the industry.
B)determine whether monopoly no longer poses a threat to the Canadian economy.
C)determine whether criminal charges are required due to unlawful collusion.
D)allow those mergers that lead to larger firms that are easier to regulate.
E)determine whether efficiency gains make the merger desirable.

Question

The diagram below shows the demand and supply curves in a perfectly competitive market.
  FIGURE 12- 5
-In Canada,a significant challenge for the Competition Bureau when reviewing a possible merger between firms in a concentrated industry is to
A)impose effective entry barriers to the industry. 
B)determine whether monopoly no longer poses a threat to the Canadian economy. 
C)determine whether criminal charges are required due to unlawful collusion. 
D)allow those mergers that lead to larger firms that are easier to regulate. 
E)determine whether efficiency gains make the merger desirable.

Quizplus · Accepted Answer

The Competition Bureau must assess whether the efficiency gains from a merger outweigh any potential negative effects on competition, such as reduced market competition or increased prices.

The Diagram Below Shows the Demand and Supply Curves in a Perfectly