Luminescent Silicon Corporation, which controls 40 percent of the computer-chip market in the United States, merges with Micro Processors, Inc., which controls 15 percent of the same market. This merger is a violation

Question

Quizplus · Accepted Answer

The merger between Luminescent Silicon Corporation and Micro Processors, Inc. would violate antitrust laws if it results in a clearer concentration of the market and makes it more difficult for potential competitors to enter. This is because a concentration of market power in the hands of a few dominant players can lead to anti-competitive behavior and harm consumers. Therefore, the correct choice is C.

Luminescent Silicon Corporation, Which Controls 40 Percent of the Computer-Chip