Which two factors make regulating mergers complicated?
A) First, the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice must both approve mergers. Second, the concentration ratios that are used to evaluate the degree of competition the merged firms face are flawed.
B) First, the time it takes to reach a decision to approve a merger is so long that the firms often have new owners and mangers. Second, by law, government officials are not allowed to consider the impact of foreign trade (exports and imports) on the degree of competition in the markets of the merged firms.
C) First, it is not always clear what market firms are in. Second, the newly merged firm might be more efficient than the merging firms were individually.
D) First, firms may lobby government officials to influence their decision to approve the merger. Second, by the time the government officials reach a decision regarding the merger, the firms often decide not to merge.
C
You might also like to view...
The existence of counterparty risk
A) has no effect on the contracting parties. B) is disallowed under current government regulations. C) results in information costs for buyers and sellers when analyzing the potential creditworthiness of potential trading partners. D) reduces the risk introduced by forward contracts.
Money is said to be liquid because it is immediately available to spend for goods
a. True b. False Indicate whether the statement is true or false
The most-favored customer is one who:
a. buys a firm's product regularly. b. is an acquaintance of the owner of a firm. c. is guaranteed to receive the lowest price for a product. d. spends the maximum amount of money on a firm's product. e. has a high purchasing power.
In a simultaneous game,
A) players have the benefit of seeing the moves of others before they make their moves. B) every player is looking forward and reasoning forward. C) one player has to go first. D) players do not have the benefit of observing the moves of other players before making their own.