Which of the Following Laws Prohibited Mergers by Stock Acquisition

question 193

Multiple Choice

Which of the following laws prohibited mergers by stock acquisition if the effect was to lessen competition?

• A) Celler-Kefauver Act of 1950
• B) Wheeler-Lea Act of 1938
• C) Clayton Act of 1914
• D) Sherman Act of 1890

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market stability.

Rate of Sales

The speed at which a company's goods are sold or its services are provided within a specific period.

Constant-cost Industry

An industry in which the input costs do not change as the industry's output changes, leading to a flat supply curve.

Demand Increase

A situation where the desire for a good or service exceeds the previous level at the current price.