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Are these mergers good for society?
How do they affect efficiency? Just skim the first few
paragraphs of the following:
ANSWER: It is often up to the US
Justice Department to determine whether or not to allow
businesses to merge into one single business. Such mergers
can reduce competition, raise prices, and cause allocative
and productive inefficiency. "Their job, essentially, is to
figure out whether a merger would reduce competition so much
that a company could raise prices without losing business to
competitors."
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