Problem: What are the circumstances that would make the government oppose a merger of two firms?
Consider the following...
What is a merger and what are some different types of mergers?
How do mergers affect market structure and performance?
Do mergers affect market power?
Can they lead to market failure?
Do policy makers consider market concentration when deciding on mergers?
What is market concentration?
Is it important to take into consideration whether the market (in which the proposed merger will take place) is characterized by high barriers or low to entry?