The government weighs the potential cost savings resulting from a merger against the potential anticompetitive problems to determine whether or not to allow a merger to take place.

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This statement is true. The government, especially the antitrust division of the Department of Justice and the Federal Trade Commission, evaluates mergers and acquisitions to determine if they comply with antitrust laws. They look at the potential cost savings that could arise from the merger, but also examine potential market power and anticompetitive problems that could harm consumers.

The Government Weighs the Potential Cost Savings Resulting from a Merger