Today combining two companies into a single entity is a lengthy and expensive process that requires regulatory approval. This regulatory requirement exist to prevent the newly formed company from _____.(1 point)

Question

Today combining two companies into a single entity is a lengthy and expensive process that requires regulatory approval. This regulatory requirement exist to prevent the newly formed company from _____.(1 point)
Responses

engaging in perfect competition
engaging in perfect competition

raising prices
raising prices

engaging in monopolistic practices
engaging in monopolistic practices

lowering prices

GPT-4o mini · Answer

The correct response is: **engaging in monopolistic practices**. Regulatory approvals in mergers and acquisitions are primarily aimed at preventing the creation of monopolies or companies that would unfairly dominate the market, potentially leading to negative outcomes for consumers and competition.