Recall the Application about the 1998 merger between Pennzoil and Quaker State to answer the following question(s). The merger resulted in a company with a market share of 38 percent: 29 percent from Pennzoil and 9 percent from Quaker State.Recall the Application. A recent study looked at the merger between Pennzoil Motor Oils and Quaker State Motor Oils, plus four other mergers. Their study found that after the mergers, the price of their products only slightly increased. This modest increase surprised:
A. those who expected the price to rise by a lot because of increased concentration.
B. those who expected to price to decrease because of increased efficiency.
C. those who expected the price to decrease because of increased government regulations.
D. those who expected the price to rise by a lot because of increased concentration and those who expected to price to decrease because of increased efficiency are correct.
Answer: D
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