Which Two Factors Make Regulating Mergers Complicated

question 129

Multiple Choice

Which two factors make regulating mergers complicated?

• A)First, firms may lobby government officials to influence their decision to approve the merger. Second, by the time the government officials reach a decision regarding the merger, the firms often decide not to merge.
• B)First, the time it takes to reach a decision to approve a merger is so long that the firms often have new owners and managers. Second, by law, government officials are not allowed to consider the impact of foreign trade (exports and imports)on the degree of competition in the markets of the merged firms.
• C)First, the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice must both approve mergers. Second, the concentration ratios that are used to evaluate the degree of competition the merged firms face are flawed.
• D)First, it is not always clear what market firms are in. Second, the newly merged firm might be more efficient than the merging firms were individually.

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Definitions:

The Persecutor

A role in a dysfunctional dynamic where the individual consistently blames or criticizes others, often part of the drama triangle.

Self-Injurious Behaviors

Actions taken to intentionally cause harm to oneself without the aim of suicide, often as a way to cope with distress.

Dissociative Identity Disorder

A severe form of dissociation, a mental process that produces a lack of connection in a person's thoughts, memory, and sense of identity, characterized by the presence of two or more distinct personality states.

Distinct Personalities

Refers to separate and divergent personality states within the same individual, often seen in dissociative identity disorder.