Which of the following would be least likely to lead the Justice Department and the FTC to block a proposed horizontal merger?
A)A finding that the resulting firm might be able to unilaterally affect price and output.
B)A finding that the potential for entry into the market by new firms would be adversely affected.
C)A finding that the potential for coordination among sellers in the market would be enhanced.
D)A finding that resulting cost savings and efficiencies would offset any increase in market power.

Question

Quizplus · Accepted Answer

The Justice Department and the FTC are primarily concerned with whether the proposed merger would create a monopoly or substantially reduce competition in the market. If the cost savings and efficiencies resulting from the merger are enough to offset any increase in market power, then it is less likely that the merger would be blocked. Options A, B, and C all represent potential antitrust concerns that could lead to a decision to block the merger.

Which of the Following Would Be Least Likely to Lead