Sysco and U.S. Foods have sought to merge their food distribution businesses. If the companies are allowed to merge, the combined company would control approximately 75% of the food service marketplace, potentially leading to higher prices and diminished service for the restaurants, hotels, and schools that contract distributors. A judge granted a Federal Trade Commission (FTC) request to grant a restraining order and injunction on the merger as it would substantially impair competition. If the FTC had not obtained a restraining order to block the merger attempt, what type of competitive structure could the merged company (U.S. Foods & Sysco) have achieved?
A. Monopoly
B. Oligopoly
C. Pure competition
D. Demand competition
Answer: A
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