Question

The _____ state that increases in economic efficiency will be taken into account and can lead to approval of a merger that otherwise would be opposed, but the burden of showing that the efficiencies exist lies with the merging firms.

Answer 1

The government regulators approve most proposed mergers and consider increases in economic efficiency. However, the burden of showing that the efficiencies exist lies with the merging firms.

Step-by-step explanation:

The government regulators approve most proposed mergers. According to the Federal Trade Commission (FTC), most mergers benefit competition and consumers by allowing firms to operate more efficiently. However, the FTC acknowledges that some mergers can lead to reduced competition, higher prices, and lower quality of products. When considering a merger, the burden of showing that it will result in increased economic efficiency lies with the merging firms.