When a Merger Increases Concentration, a Defense That Shows That

question 303

Multiple Choice

When a merger increases concentration, a defense that shows that the firms' customers are sophisticated, large buyers that will not be taken advantage of by a bigger merged firm is:

• A) the failing firm defense
• B) potential competitor defense
• C) power-buyer defense
• D) directorate defense
• E) no such defense is recognized

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Definitions:

American President

The head of state and head of government of the United States, elected to a four-year term, serving as the executive branch's leader.

Plessy V. Ferguson

A landmark 1896 U.S. Supreme Court decision that upheld state laws requiring racial segregation in public facilities under the doctrine "separate but equal."

Separate-But-Equal

A legal doctrine that justified and permitted racial segregation, claiming equality in separate facilities for black and white Americans.

Supreme Court

The highest judicial body in a country or state, typically having the ultimate authority in legal disputes and constitutional matters.