In the Case of Interstate Bakeries and Continental Bakery, the Justice

question 9

Multiple Choice

In the case of Interstate Bakeries and Continental Bakery, the Justice Department concluded that

• A) the merger of two firms selling close substitutes may lead to higher prices.
• B) Interstate Bakeries attempted to drive out Continental by using predatory pricing.
• C) a merger between the two companies would save money in production costs, and so would be good for consumers.
• D) Continental attempted to drive out Interstate Bakeries by using predatory pricing.

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Definitions:

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Mental disorders characterized by abnormal or disturbed eating habits, which can severely affect a person's health.

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsiveness.

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The use of force, coercion, or intimidation to abuse, aggressively dominate, or intimidate another individual.

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Small rodents originally from Syria, popular as household pets due to their docile nature and ease of care.