Asked by Brian Doherty on May 20, 2024
Verified
Four grocery stores account for 80 percent of the retail food sales in Metro City. Two of the stores want to merge. In determining whether the merger violates the Clayton Act, the most crucial factor is
A) the market shares of the firms in their market.
B) the market value of the firms' shares in the stock market.
C) the comparative value of each store in a market for their sale.
D) the total value of the market in relation to the stock for sale in the stores.
Clayton Act
A U.S. antitrust law aimed at preventing monopolies and promoting competition.
Market Shares
The percentage of total sales within an industry generated by a particular company.
Retail Food Sales
The selling of food products directly to consumers as the end user, typically through establishments like supermarkets or restaurants.
- Analyze the consequences that mergers and acquisitions have on market competitiveness as governed by the Clayton Act.
Verified Answer
CN
Charlie NguyenMay 26, 2024
Final Answer :
A
Explanation :
The most crucial factor in determining whether a merger violates the Clayton Act, which addresses anticompetitive practices, is the market shares of the firms in their market. This helps assess the merger's potential impact on competition.
Learning Objectives
- Analyze the consequences that mergers and acquisitions have on market competitiveness as governed by the Clayton Act.