If the merger of two firms is challenged by an antitrust agency, one possible solution is for the firms to_____ .
A)sell their assets to each other to avoid reducing competition.
B)include more than three firms in the merger.
C)sell some of their assets to a third firm to avoid reducing competition.
D)include a third firm in the merger.

Question

Quizplus · Accepted Answer

Selling some of their assets to a third firm would create a new competitor in the market, increasing competition and satisfying antitrust concerns. The other options do not address the issue of reducing competition, which is the reason the merger is being challenged by the antitrust agency.

If the Merger of Two Firms Is Challenged by an Antitrust