The typical test applied for merger approval under U.S.antitrust law requires that:
A) quantities produced not fall.
B) prices not rise.
C) aggregate surplus not fall.
D) the merger not be horizontal in nature.

Question

Quizplus · Accepted Answer

The typical test applied for merger approval under U.S. antitrust law is the "Horizontal Merger Guidelines." This test focuses on the potential for the merger to harm competition by increasing prices, reducing output, or lowering the quality of goods or services. Therefore, the requirement is that prices not rise, which is option B. The other options are not accurate tests applied for merger approval under U.S. antitrust law.

The Typical Test Applied for Merger Approval Under U