Recall the Application About the Government Blocking the Merger Between

question 41

Multiple Choice

Recall the Application about the government blocking the merger between baby food makers Heinz and Beech-Nut to answer the following question(s) .
-Recall the Application. Heinz, the second largest baby food producer tried to buy the Beech-Nut brand. Even though the combined firm would be less than half the size of the market leader Gerber, the government blocked the merger because:

• A)the smaller the number of firms in an industry the easier price coordination.
• B)baby food production levels are set by the government.
• C)Gerber did not want a competitor as big as the combined firm would have been.
• D)all of the above

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