Morgan and Stanley Are the Owners of the Two Largest

Multiple Choice

Morgan and Stanley are the owners of the two largest nail manufacturing businesses in Western Australia.Morgan and Stanley decide to merge to form a single business to take advantage of the economies of scale.In which of the following scenarios is the merger least likely to be objected to by the ACCC?

A) The merged business will be able to sustain significantly reduced prices that undercut smaller businesses for at least a year.
B) The merged business will have a 65% market share; more than triple the market share of its nearest competitor.
C) The merger will lead to an overall drop in the price of nails for consumers.
D) The merger will result in substantial job losses for the employees of both companies.