Imperio Caffeine Corporation makes and sells coffee under a variety of brand names. Imperio wants to merge with Java Company, its main competitor. In weighing a challenge to the deal, a court looks at the relevant product market. This most likely includes coffee and

a. no other products

b. products that are reasonably interchangrable.

c. products with identical attributes only.

d. products that are sometimes substituted for coffee.

Question

Business

Leroy Rosario

2 August, 14:55

Imperio Caffeine Corporation makes and sells coffee under a variety of brand names. Imperio wants to merge with Java Company, its main competitor. In weighing a challenge to the deal, a court looks at the relevant product market. This most likely includes coffee and

a. no other products

b. products that are reasonably interchangrable.

c. products with identical attributes only.

d. products that are sometimes substituted for coffee.

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Answers (1)

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Christopher Meadows · Answer 1

D) products that are sometimes substituted for coffee.

Explanation:

The court has to consider all the coffee products offered by the competition and other substitutes products. Substitute products are products that offer similar benefits to coffee that are produced by other industries.

In this case other substitute products to coffee would be tea (in all its variations), root coffee or other similar tasting alternatives, roasted grain beverages, etc.