Question

MULTIPLE CHOICE
What's the biggest concern people have about mergers?
(A) They drive down the cost of labor, leading to greater unemployment.
(B) They lead to the development of generic brands that produce inferior goods.
(C) They lead to greater competition and force businesses to cut corners to stay in operation.
(D) They result in a concentration of power, which can lead to monopolies.

Answer 1

Answer:

D

Explanation:

Monopolies aren't good for a economy because with so much power, they are able to control the entire market of which they are based. This defeats the purpose of a free-market economy where consumers have options to pick from instead of one ultimate choice.