In the Case Opener, a Decision of the Federal Trade

question 52

Multiple Choice

In the Case Opener, a decision of the Federal Trade Commission blocking a proposed merger between Polypore and Microporous Products was appealed on the basis that it would substantially lessen competition. Which of the following was the result on appeal?

• A) That the Federal Trade Commission erred in treating the merger as a vertical merger instead of a horizontal merger and that the proposed merger should have been allowed to proceed.
• B) That the Federal Trade Commission erred in determining that the proposed merger would substantially lessen competition and that the merger should have been allowed to proceed.
• C) That the Federal Trade Commission erred in asserting jurisdiction over the dispute and that the matter would be remanded to the federal district court.
• D) That the Federal Trade Commission properly determined that a horizontal merger was involved that would substantially lessen competition.
• E) That although the Federal Trade Commission erred in treating the merger as a horizontal merger rather than as a vertical merger, the Commission properly determined that the proposed merger would substantially lessen competition.

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Definitions:

Hockey Stick Phenomenon

A pattern in business where a significant increase in orders or performance is observed right before a deadline, resembling the shape of a hockey stick.

Evaluation Period

The designated timeframe during which the performance, efficiency, or effectiveness of a project, program, or strategy is assessed.

Revenue-sharing Contract

An agreement between two or more parties that stipulates the proportion of revenue generated by a business venture to be distributed among the partners.

Consumer Demand

The desire and willingness of buyers to purchase goods and services at various price points.