How can a firm in a merger avoid antitrust action by the government?
A) Prove that the industry's HHI is over 1800.
B) Prove that efficiency will improve from the resulting merger.
C) Prove that price will not increase from the resulting merger.
D) None of the statements are correct.

Question

Quizplus · Accepted Answer

Proving that efficiency will improve from the merger can help justify it under antitrust laws, as it suggests consumer benefits.

How Can a Firm in a Merger Avoid Antitrust Action