The Federal Trade Commission Is Likely to Challenge a Merger

Multiple Choice

The Federal Trade Commission is likely to challenge a merger in an industry with

A) a low price-cost margin because it reflects firm inefficiency.
B) a high price-cost margin because it reflects firm inefficiency.
C) a low price-cost margin because it reflects high market power.
D) a high price-cost margin because it reflects high market power.
E) a negative price-cost margin because it reflects poor industry performance.