Holey Doughnuts and Clair's Eclairs Want to Merge

question 49

Multiple Choice

Holey Doughnuts and Clair's Eclairs want to merge.Each has 2 percent of the local pastry market.It is most likely that

• A)the Department of Justice would challenge the merger but the Federal Trade Commission would not
• B)the Federal Trade Commission would challenge the merger but the Department of Justice would not
• C)the merger will go unchallenged because it will not tend to reduce competition
• D)the government will successfully challenge the merger because it is a horizontal merger
• E)the government will successfully challenge the merger because it is a vertical merger

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