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Recall the Application About the Government Blocking the Merger Between

Question 443

Multiple Choice

Recall the Application about the government blocking the merger between baby food makers Heinz and Beech-Nut to answer the following question(s) .
-Recall the Application. Heinz, the second largest baby food producer tried to buy the Beech-Nut brand. Even though the combined firm would be less than half the size of the market leader Gerber, the government blocked the merger because:


A) the smaller the number of firms the more difficult it is for the government to regulate them.
B) most stores only stock two brands of baby food and Heinz and Beech vigorously compete.
C) Gerber did not want a competitor as big as the combined firm would have been.
D) bigger firms have too much political clout.

Correct Answer:

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