Question

Mergers are closely scrutinized by the government because A. they always result in a more efficient market. B. they might allow the firms involved to dominate the market and act as a legalized cartel​ (monopoly). C. they always result in lower joint profits of the firms involved. D. all mergers are undesirable.

Answer 1

Answer:

B.

Explanation:

Mergers are transactions in which the ownership of two companies or businesses are made into a single entity. According to my research on different law firm strategies, I can say that based on the information provided within the question they are scrutinized because they might allow the firms involved to dominate the market and act as a legalized cartel. In other words they might become a Monopoly which brings with it various problems for other people and entities.

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