Which of the Following Statements Regarding Monopoly Mergers Is False

question 16

Multiple Choice

Which of the following statements regarding monopoly mergers is false?

• A) It is often argued that merging with or acquiring a major rival enables a firm to substantially reduce competition within the industry and thereby increase profits.
• B) Financial researchers have found that the share prices of other firms in the same industry did not significantly increase following the announcement of a merger within the industry.
• C) While only the merging company benefits when competition is reduced, all companies in an industry pay the associated costs.
• D) Society as a whole bears the cost of monopoly strategies, so most countries have antitrust laws that limit such activity.

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Definitions:

Media Outlets

Organisations or channels that distribute news, entertainment, or other information to the public, such as newspapers, radio, television, and digital platforms.

Government Regulation

Laws and rules established by government agencies intended to control or manage specific industries or activities for the protection of public welfare.

Synergy

The collaboration or working together of two or more organizations, substances, or entities to create an outcome that is more significant than the total of their individual effects.

Cell Phone Providers

Companies that offer services for mobile phone users, including voice communication and data services.