Assume that Coca-Cola has a market share of 40% and Pepsi has a market share of 30%. If Pepsi and Coca-Cola attempt to merge, will the Federal Trade Commission challenge that attempt in court?

Question

Quizplus · Accepted Answer

The Federal Trade Commission (FTC) would likely challenge the attempt because the merger would significantly increase market concentration, combining two of the largest competitors in the beverage industry to control 70% of the market share. This could potentially reduce competition and harm consumers, which are concerns the FTC aims to address.

Assume That Coca-Cola Has a Market Share of 40% and Pepsi