A large electronics manufacturer has focused on the computer and office machines markets.Recently,it introduced a videocassette recorder.The manufacturer has frequently considered entering the home entertainment markets,but recently proposed merging with a television and stereo equipment manufacturer rather than entering the market by itself.This merger could be challenged on the basis of:

Question

Quizplus · Accepted Answer

The proposed merger between the electronics manufacturer and a television and stereo equipment manufacturer could potentially result in a substantial lessening of competition in the home entertainment market. This could lead to antitrust concerns and a potential challenge to the merger on this basis. Therefore, the best choice is A, the probability of a substantial lessening of competition theory. The other theories listed are not relevant to this scenario.

A Large Electronics Manufacturer Has Focused on the Computer and Office