In 2014, Tyson Foods announced its intentions to purchase Hillshire Brands. This merger would imply that Tyson would be the sole buyer of more than 1/3 of all the sows purchased from U.S. farmers. One benefit to the consumer of this merger is that the larger Tyson may be able to:
a. Exercise market power
b. Increase market competition
c. Decrease its economies of scale
d. Decrease its per unit costs of production and processing
Answer: D
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