Question

Four grocery stores account for 80 percent of the retail food sales in Metro City. Two of the stores want to merge. In determining whether the merger violates the Clayton Act, the most crucial factor is

Answer 1

Considering the situation described above, to determine whether the merger violates the Clayton Act, the most crucial factor is "the market shares of the firms in their market."

This is because the Clayton Act was passed by the US Congress in 1914 to purposely curbed unethical business activities such as unethical mergers, price-fixing, monopolies, etc.

However, in this case, to reveal that the merger in this situation is not anti-competitive, the most crucial factor is to assess the market shares of the firms in their market.

Hence, in this case, it is concluded that the correct answers are "the market shares of the firms in their market."

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