The Court will block proposed horizontal and vertical mergers when
A) there are many firms in the market
B) economies of scale exist
C) junk bonds are involved
D) the stock market is doing poorly
E) high market concentration already exists

Question

Quizplus · Accepted Answer

The Court is likely to block proposed horizontal and vertical mergers when high market concentration already exists because such mergers can reduce competition, leading to a monopoly or oligopoly situation. This can harm consumers through higher prices, reduced choice, and decreased innovation.

The Court Will Block Proposed Horizontal and Vertical Mergers When