1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
astra-53 [7]
3 years ago
15

Suppose two companies attempt to merge, and they operate in an industry where the postmerger Herfindahl-Hirschman index is 2,900

and the increase in the Herfindahl-Hirschman index from the merger is 225.
Which of the following is NOT a condition that would improve the likelihood of the Justice Department approving the merger?

a. The HHIs are based on too narrow a definition of the product market.
b. There are significant diseconomies of scope.
c. One of the firms is in financial trouble.
d. There are significant economies of scale.
e. There is notable foreign competition.
Business
2 answers:
STatiana [176]3 years ago
8 0

Answer: C

Explanation:

According to the United States Department of Justice a market with an HHI of 2,500 or greater is considered a highly concentrated marketplace. The general rule states that a merger which increases the HHI by more than 200 points in highly concentrated markets raise trust issues and concerns, which in this case the increase of 225 after the merger would raise concerns, this also means the Market is competitive

Allushta [10]3 years ago
6 0

Answer:

Option B -  There are significant diseconomies of scope is the correct answer.

Explanation:

Option  A is, not a condition that could improve the probability that the justice department would approve the merger.

The Herfindahl-Hirschman index is based on a restricted definition of the product market or the impact of foreign competition, the merger might be allowed.

It might also be permitted if one of the firms is in financial trouble, or if significant economies of scale exist in the industry.

Significant diseconomies of scope would only serve to make the merger less likely to be accepted.

Therefore, option B is the correct answer.

You might be interested in
Nervous Norman holds 70% of his assets in cash, earning 0%, and 30% of his assets in an insured savings account, earning 2%. The
elena-14-01-66 [18.8K]

Answer: 0.6%

Explanation:

The expected return is a weighted average of the returns of the assets invested in.

70% is invested in cash which earns 0%

30% is in a savings account earning 2%

Expected return = (70% * 0%) + (30% * 2%)

= 0% + 0.6%

= 0.6%

6 0
3 years ago
Assume that a firm spends $500 on two inputs, labor and capital. If the wage rate is $20 per hour and the cost of capital is $25
Zolol [24]

Answer:

D. -4/5

Explanation:

Given that

Wage rate = $20 per hour

Cost of capital = $25 per hour

Recall that,

Slope of isocost = -(w/r)

Where,

W = wage rate

r = rental cost of capital.

Thus,

Slope of isocost curve

= -(20/25)

= -0.8 or -4/5

Note that, the negative of the ratio is the price of the two inputs. Also isocost is a line showing the various combinations of inputs which cost the same amount.

6 0
3 years ago
Read 2 more answers
Indirect costs occur when
nikklg [1K]

Answer:

The answer is A. resources are shared by more than one product or service.

Explanation:

Indirect cost are costs that are not directly related or traced to any product or activity. They are shared or used by more than one activities. Examples include, Adminstrative expenses, advertising expenses, telephone expenses, rent, office expenses etc.

Like direct cost, indirect cost can be fixed or variable.

Indirect costs are used by business as a whole and not just limited to a particular product.

Option B is not correct. Cost that are directly traced or related to a product is known as direct material. For example, direct labour and direct material used to produce a particular good.

Option C and D are also wrong

5 0
3 years ago
In order to be impartial and lawful, a pre- inspection agreement must be
lakkis [162]
A. paid for by the lender. 
<span>B. signed by the real estate agent. </span>
<span>C. used within 30 days </span>
<span>D. negotiable and capable of being altered. </span>

<span>The Standards of Practice published by the American Society of Home Inspectors (ASHI) are quite inclusive and </span>
<span>A. describe the procedures used in a termite inspection. </span>
<span>B. explain that inspectors may never examine heating systems. </span>
<span>C. can be referred to in court, if necessary. </span>
<span>D. list the fees inspectors must charge for their services </span>
<span>(I know for this question it is NOT D.) </span>

<span>Another term for a pre-inspection agreement is </span>
<span>A. standard of practice </span>
<span>B. pre-sale inspection. </span>
<span>C. scope of work. </span>
<span>D. partial inspection. 
hope that helped</span>
8 0
3 years ago
Read 2 more answers
How long can foodborne illnesses last
Helga [31]

Answer: Symptoms begin 2 to 10 days after becoming infected, and may last 1 to 2 weeks.

Explanation:

3 0
3 years ago
Other questions:
  • All of the following are guidelines for budgeting except:
    14·1 answer
  • The sustainable growth rate is based on the premise that:
    9·1 answer
  • Residence halls are typically found at all of the following schools except
    9·1 answer
  • Symbic Foods, a chain of fast food restaurants, has included a drop-down menu on its main Web site. With this drop-down menu, pe
    12·1 answer
  • In a Harvard Business Review article, consultant Ben Dattner emphasizes the importance of giving credit to others for their good
    7·1 answer
  • Baxton courier services recently equipped all of its employees with electronic tablets in order to track the whereabouts of the
    15·1 answer
  • Which of the following companies is the easiest type to set up? A. Sole proprietorship B. LLC C. C corporation D. S corporation
    15·2 answers
  • Most job leads are discovered through____?
    12·1 answer
  • Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in.
    12·1 answer
  • a consumer faces a tradeoff between labor (????) and leisure (????). she consumes a composite good (????). when the consumer wor
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!