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When Interstate Bakeries Tried to Buy the Maker of Wonder

Question 18

Multiple Choice

When Interstate Bakeries tried to buy the maker of Wonder Bread,


A) the government concluded that the merger would not significantly affect the price of bread.
B) the two brands of bread were determined to be close substitutes.
C) the Federal Trade Commission believed that the merger was a good idea because the combined firm would face lower costs and the cost savings could be passed to consumers in the form of lower prices.
D) the government concluded that the merger would reduce tax receipts paid to state governments, and therefore blocked the merger attempt.

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