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In the Case of Interstate Bakeries and Continental Bakery, the Justice

Question 408

Multiple Choice

In the case of Interstate Bakeries and Continental Bakery, the Justice Department concluded that


A) the merger of two firms selling close substitutes may lead to higher prices.
B) Interstate Bakeries attempted to drive out Continental by using predatory pricing.
C) a merger between the two companies would save money in production costs, and so would be good for consumers.
D) Continental attempted to drive out Interstate Bakeries by using predatory pricing.

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