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.

---

Definitions:

Leadership

The act of guiding or influencing a group towards achieving its goals through direction, motivation, and implementation of effective strategies.

Interpersonal Skills

Abilities used by individuals to interact effectively with others, such as communication, listening, empathy, and conflict resolution.

Ethical Tone

The overall orientation and attitude of an organization or leader towards ethical behavior and decision-making.

Corporate Leaders

Individuals at the highest level of management within a corporation who are responsible for making strategic decisions.