A merger between two competitors may be approved by the Competition Bureau if the two companies can substantiate ________ as a result of the merger.
A)increases in revenue for the merged company
B)an increase share of sales controled by one firm
C)decreases in marginal revenue for the merged company
D)increases in economic efficiency

Question

Quizplus · Accepted Answer

The Competition Bureau will approve a merger between two competitors if it can be substantiated that there will be increases in economic efficiency as a result of the merger. This means that the merged company will be able to produce goods or services at a lower cost, leading to benefits for consumers, which ultimately outweigh any potential negative impact on competition.

A Merger Between Two Competitors May Be Approved by the Competition