Final answer:
The statement defining common carriage as the service offered to the public based on advertising is true. Greyhound Lines, Inc. and Trailways Transportation System favored a broader definition of the market during their merger to avoid the appearance of a monopoly and ease regulatory approval. The correct option is 1) True
Step-by-step explanation:
Common carriage refers to the transportation of passengers or cargo that entails advertising the availability of such service to the public. This statement is true, as common carriers typically offer their services to general consumers under a regulatory framework that often mandates non-discrimination in service provision.
Case Study: Greyhound Lines, Inc. and Trailways Transportation System Merger
When Greyhound Lines, Inc. and Trailways Transportation System were considering a merger, they preferred the broader market definition of "the market for intercity transportation," which included personal cars, car rentals, passenger trains, and commuter air flights.
This broader definition was more advantageous because it presented the companies as holding only a small share of the overall intercity transportation market, rather than a near-monopoly in the narrower "market for intercity bus service." Consequently, considering the myriad of other transportation options in the broader definition, the merger was permitted. The correct option is 1) True