medium · GMAT Verbal
Some mergers leave today's prices unchanged yet eliminate a rival that would likely have developed a competing technology, dampening future innovation. A review process that examines only present-day price effects would clear such a merger. Yet the harm from lost innovation can exceed any short-term price benefit.
Which of the following is most strongly supported by the statements above?
- A review process limited to present-day price effects can clear a merger that ultimately causes greater harm than benefit.
- Every merger that leaves prices unchanged eliminates a future innovator.
- Antitrust authorities currently ignore all innovation effects when reviewing mergers.
- Mergers that raise present-day prices are always more harmful than those that dampen innovation.
- A merger should be cleared whenever its short-term price benefit is positive.
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