Which of the Arguments Staples and Office Depot Made in Defense

question 67

Multiple Choice

Which of the arguments Staples and Office Depot made in defense of their proposed merger would be least defensible on economic grounds?

• A)There would be substantial economies of scale.
• B)The two firms were in competition with all other office supply stores, not just office supply superstores.
• C)The history of low pricing by the two stores meant that they would not raise prices in the future after they merged.
• D)Entry into the office supply market is relatively easy.

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Definitions:

Virtuous Circle

A chain of positive events that reinforce themselves through a feedback loop, leading to further beneficial outcomes.

Rationalization

The process of offering a logical or reasonable explanation for behaviors or decisions that might otherwise appear irrational.

Government Contract

A legally binding agreement between a business and a government entity for the supply of goods or services.

Best Interests

Actions or decisions that are considered most beneficial to the well-being or success of an individual or group.