Which of the following are used by antitrust regulators to determine whether a proposed transaction will be anti-competitive?
A) Market share
B) Barriers to entry
C) Number of substitute products
D) A and B only
E) A, B, and C

Question

Quizplus · Accepted Answer

Antitrust regulators use the market share, barriers to entry and number of substitute products to determine whether a proposed transaction will be anti-competitive. Market share is used to determine the dominance of the merging companies in the market, barriers to entry are relevant because high barriers prevent new competitors from entering the market, and the number of substitute products affects the degree of competition in the market. Therefore, all three factors are important in determining the potential anti-competitive effects of a proposed transaction.

Which of the Following Are Used by Antitrust Regulators to Determine