Assume That Coca-Cola Has a Market Share of 40% and Pepsi

question 83

Multiple Choice

Assume that Coca-Cola has a market share of 40% and Pepsi has a market share of 30%. If Pepsi and Coca-Cola attempt to merge, will the Federal Trade Commission challenge that attempt in court?

• A) No, the industry is not concentrated.
• B) Any decision would have to be unknown until the FTC closely evaluated the effects.
• C) Yes, the industry is concentrated.
• D) No, only the Justice Department has legal authority over mergers.

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