In an Antitrust Case Where a Plaintiff Is Challenging a Proposed

question 69

Multiple Choice

In an antitrust case where a plaintiff is challenging a proposed merger involving the defendant (who wants the merger to be approved,) which of the following is true about the likely arguments the parties will make regarding the relevant market?

• A) Any arguments are usually pointless, because relevant markets are usually clearly determined in advance.
• B) Both parties will likely argue for a narrowly-defined relevant market.
• C) The plaintiff will argue for a narrowly-defined relevant market, and the defendant will argue for a broadly-defined relevant market.
• D) The plaintiff will argue for a broadly-defined relevant market, and the defendant will argue for a narrowly-defined relevant market.
• E) Both parties will argue for a broadly-defined relevant market.

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Definitions:

Marginal Revenue

The enhanced earnings from selling an additional unit of a product or service.

Pure Competition

A market structure characterized by a large number of firms, all producing identical products, and no single firm has any influence over market price.

Extra Unit

The additional quantity of a product or service that is produced or provided.

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers, all selling identical products, and no single buyer or seller can influence the market price.