Question
Brautigan Mayonnaise sells its product only in grocery stores and restaurants west of the Rockies. TFIA Mayonnaise is sold in the rest of the country,
Brautigan Mayonnaise sells its product only in grocery stores and restaurants west of the Rockies. TFIA Mayonnaise is sold in the rest of the country, and has only limited sales in Brautigan's territory. Both companies dominate the mayonnaise markets in their respective regions. TFIA and Brautigan agree to merge, in order to take advantage of economies of scale in purchasing ingredients, as well as in marketing and advertising. Is the merger of these two companies a violation of antitrust law?
a.No, because there is no agreement to restrain competition.
b.Yes, because the merger between two dominant companies will harm competition.
c.Yes, because a merger between two dominant companies is generally an antitrust violation.
d.No, because the merger will not harm competition.
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