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 these statements?

  1. A review process limited to present-day price effects can clear a merger that ultimately causes greater harm than benefit.
  2. Every merger that leaves today's consumer prices entirely unchanged will necessarily eliminate a likely future market innovator.
  3. Antitrust authorities reviewing mergers today ignore each and every possible innovation effect and weigh only present prices.
  4. Mergers that raise present-day prices are always more harmful to consumers than those that merely dampen innovation.
  5. A proposed merger ought to be cleared whenever its measured short-term consumer price benefit turns out positive.

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