Which of the Following Is NOT a Cause for the Intervention

question 61

Multiple Choice

Which of the following is NOT a cause for the intervention of antitrust authorities?

• A) Companies abuse their market power by acquiring new firms that allow for the increase of prices above a level that would occur in a competitive market.
• B) The merger between two companies allows for several customer options and substantial competition within the industry.
• C) An acquisition that creates too much consolidation and increases the potential for future abuse of market power.
• D) A company cuts prices when a new competitor enters the industry to force the competitor out of business.
• E) Dominant companies use their market power to crush potential competitors.

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