A merger will usually be challenged if which of the following is expected to occur as a result of the merger?
A)a price increase
B)a price decrease
C)an increase in consumer surplus
D)competition remains after the merger

Question

Quizplus · Accepted Answer

A merger that is expected to result in a price increase is likely to face challenges from regulators, as it could be seen as a violation of antitrust laws. The goal of antitrust laws is to protect consumers from monopolies or oligopolies that could lead to higher prices and reduced consumer surplus. Therefore, if a merger is expected to lead to a price decrease or an increase in consumer surplus, it is less likely to be challenged. If competition remains after the merger, it may also be viewed favorably by regulators.

A Merger Will Usually Be Challenged If Which of the Following