Help answering completely Cooperation among oligopolies runs counter to the publ

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Help answering completely

Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. In an effort to bring resource allocation closer to the social optimum, public officials attempt to force oligopolies to compete instead of cooperating. Consider the following scenario: Suppose that two American investment banks negotiate a merger agreement because a financial crisis threatens to bankrupt both firms. This merger could potentially be stopped by a lawsuit brought by which of the following American institutions? The Defense Department The Justice Department The Interior Department The Commerce Department

Explanation / Answer

Justice department

In the description given above, the merger could potentially be stopped by a lawsuit brought by the Justice Department. This institution, as well as private parties, has the power to initiate lawsuits toprevent mergers that could result in a single firm having excessive market power.The CommerceDepartment is responsible for promoting economic growth, while the Defense Department maintains themilitary. The Interior Department manages federal land and programs for indigenous people

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