An article in the Wall Street Journal quoted a DOJ antitrust official as saying, “Mergers between substantial competitors, especially in already concentrated industries, can give companies far too much power over the markets in which they operate.”

a. What does the official mean by a “concentrated industry”?

b. What does he mean by “power over the markets in which they operate”?

c. The article also quoted the official as saying that mergers might benefit the public “when they bring together complementary assets, people and ideas that help lower production costs or spur greater innovation.” Will these positive aspects of a merger always be enough to offset the negative aspects you discussed in answering part (b) of this problem? Briefly explain.