Home / Questions / The Department of Justice has challenged the merger of two firms, and the case has ended u
The Department of Justice has challenged the merger of two firms, and the case has ended up in the
Supreme Court. The two firms argue that they will not use their monopoly power to raise prices or to cut
output. Under what judicial standard would their merger be allowed, and under what judicial standard
would their merger be disallowed?
8.IBM and Sara Lee are two of the biggest firms in the United States, but they produce different products.
Could they legally merge, or would their merger be struck down by the courts?
9.a. What is a consent decree?
b.Why would the FTC agree to a consent decree?
c.What is the problem with consent decrees?
10.Explain why producers rather than consumers may be the beneficiaries of regulation. Does the evidence
support this view?
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