The US Federal Trade Commission justifies their record of approval of most mergers by asserting that, even though competition is diminished by consolidating two firms into one, mergers actually benefit
A) competition and consumers by forcing firms to lower consumer pricing.
B) competition and consumers in the short-run.
C) competition and consumers by allowing firms to operate more efficiently.
D) competition and consumers at the outset.

Question

Quizplus · Accepted Answer

Mergers can lead to increased efficiency by allowing firms to reduce costs, improve production processes, or innovate, which can benefit competition and consumers by potentially lowering prices, improving quality, or offering new products.

The US Federal Trade Commission Justifies Their Record of Approval