Mergers are closely scrutinized by the government because

Question

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Mergers are closely scrutinized by the government because they might allow the firms involved to dominate the market and act as a legalized cartel (monopoly). This can result in higher prices for consumers and reduced competition. Therefore, it is important for the government to ensure that competition is not distorted by mergers. Option B, C, and D are incorrect as they are not always true. Some mergers may result in a more efficient market, higher joint profits, or be desirable for other reasons.

Mergers Are Closely Scrutinized by the Government Because