An Allowable Defence for a Merger According to Canada's Competition

question 113

Multiple Choice

An allowable defence for a merger according to Canada's Competition Bureau is that

• A)merging firms find it easier to decide how they will share the market.
• B)merging firms are more profitable because they no longer have to compete with one another.
• C)the gains in efficiency resulting from the merger more than offset any reductions in competition.
• D)merged and therefore bigger firms are better placed to compete globally.
• E)larger firms are easier to regulate.

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Definitions:

Equilibrium

A state in which opposing forces or influences are balanced so that no changes occur, or in a chemical context, when the rate of the forward reaction equals the rate of the backward reaction.

Energy of Activation

The minimum amount of energy that reacting species must possess in order to undergo a specified chemical reaction.

Equilibrium

A state in which the forward and reverse reactions occur at equal rates in a chemical reaction, resulting in no net change in the concentration of reactants and products.

Dynamic Equilibrium

Dynamic equilibrium occurs when the rate of forward reaction equals the rate of the reverse reaction in a chemical system, resulting in the concentrations of reactants and products remaining constant over time.