Which of the following is a valid criticism of the reduction of competition that results from corporate mergers?
A) merged firms generally are as efficient and innovative as they can be
B) consumers will have greater access to lower priced goods and services
C) merged firms can increase price and maintain permanently higher profits
D) merged firms are better positioned to take advantage of economies of scale

Question

Quizplus · Accepted Answer

Merged firms often have less competition, which can allow them to increase prices and maintain higher profits due to reduced pressure to keep prices low. This can be detrimental to consumers.

Which of the Following Is a Valid Criticism of the Reduction