An allowable defence for a merger according to Canada's Competition Bureau is that
A)merging firms find it easier to decide how they will share the market.
B)merging firms are more profitable because they no longer have to compete with one another.
C)the gains in efficiency resulting from the merger more than offset any reductions in competition.
D)merged and therefore bigger firms are better placed to compete globally.
E)larger firms are easier to regulate.

Question

Quizplus · Accepted Answer

This is known as the "efficiency defence" and is recognized by the Competition Bureau. It means that as long as the gains in efficiency resulting from the merger more than offset any reductions in competition, the merger may be allowed.

An Allowable Defence for a Merger According to Canada's Competition