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Kamila [148]
3 years ago
8

The government challenged the acquisition by Procter & Gamble (P&G) of Clorox. Clorox was the leading manufacturer of li

quid bleach at the time of the acquisition, Page 504accounting for 48% of the national sales. It was the only firm selling nationally, and the top two firms accounted for 65% of national sales. P&G is a large, diversified manufacturer of household products, with its primary activity being in the area of soaps, detergents, and cleaners. P&G accounted for 54% of all packaged detergent sales, and the top three firms accounted for 50% of the market. P&G is among the nation’s leading advertisers. What is the basis for the government’s challenge to this acquisition? Explain.
Business
2 answers:
STatiana [176]3 years ago
4 0

Answer:

The basis for the government’s challenge to this acquisition is the reliance on the horizontal merger. If the acquisition is approved, it would dissuade new entrants, discourage active competition from firms already in the industry due to fear of retaliation from Procter and decrease nationwide competition significantly in the liquid bleach field.

Explanation:

According to the case FTC v. Procter & Gamble Co., 386 U.S. 568 (1967), Federal Trade Commission (FTC) held the acquisition violative of § 7 of the Clayton Act.

Phoenix [80]3 years ago
3 0

Answer:

Answer: The basis for the government's challenge to P&G's acquisition of Clorox

Explanation:

The horizontal merger is the basis for the government's challenge to P&G's acquisition of Clorox because the result would have lessened competition substantially in that line of commerce nationwide. P&G being the leading and mainly national advertiser and also mainly national seller of soaps, detergents and cleaners with sales that accounted for 54 % of the market and a  leading brand with 48% of national sales.

With this type of advertising and power control which P&G possess, this would put P&G in a position to control the market and potentially detrimentally affect the consumers. These advantages they posses would reduce the number of competitors and lead to greater concentration in the industry they are.

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Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration.
ivolga24 [154]

Answer:

differential revenue = $7

so correct option is a.$7

Explanation:

given data

Product A costs = $6

contribution margin = $3

Product B costs = $12

contribution margin = $4

to find out

the differential revenue for this decision

solution

we get here the differential revenue for this decision that is express

so first we get here selling price for both product that is

selling price product A = Product A costs + contribution margin

selling price product A  = $6 + $3 = $9

and

selling price product B   = $12 + $4 = $16

so now we get differential revenue that is

differential revenue = selling price product B - selling price product A

differential revenue = $16 - $9

differential revenue = $7

so correct option is a.$7

4 0
3 years ago
What is the difference between industrial and consumer goods?
lina2011 [118]
“Industrial goods are materials used in the production of other goods.” “Consumer goods are finished products that are sold to and used by consumers”

LINK TO WHERE I FOUND THAT INFO:
https://www.investopedia.com/ask/answers/050415/how-are-industrial-goods-different-consumer-goods.asp

Hope that helped have a great day! :)
4 0
3 years ago
Read 2 more answers
The operating and maintenance expenses for a mining machine are expected to be $11,880 in the first year and increase by $864 pe
nalin [4]

Answer:

The answer is "\$16,441".

Explanation:

First-year operational and maintenance costs = \$11,880.

Operating and repair costs increase inwards=\$864 for the first year

N =15 years machine life

Interest I = 10\%annually combined

Please find the image file.

Its single payment sequence is now provided by:

Amount=(\text{15-year system quantity})\times (\frac{\text{Rate of interest}}{(1-(1+ \text{Rate of interest})- n))}

             = \$522,371.3236 \times (\frac{0.1}{(1-(1+0.1)-15)})\\\\

Uniform payment sequence =\$16441.2477 \approx\$16,441

5 0
3 years ago
Consider a hypothetical closed economy in which households spend $0.70 of each additional dollar they earn and save the remainin
navik [9.2K]

Answer:

(a) 0.7

(b) 3.33

(c) -$210

(d) -$147

(e) -$1 trillion

Explanation:

(a) Marginal propensity to consume (MPC) = 0.7

(b) Multiplier of this economy:

=\frac{1}{1-MPC}

=\frac{1}{1-0.7}

      = 3.33

(c) Decrease government purchases by $300 billion,

Initial change in consumption = Change in government purchases × MPC

                                                  = $300 × 0.7

                                                  = -$210 billion

(d) This decreases income yet again, causing a second change in consumption equal to:

= Initial change in consumption × MPC

= -$210 × 0.7

= -$147 billion

(e) The total change in demand resulting from the initial change in government spending is:

= Change in government purchases × Multiplier

= $300 × 3.33

= -$1 trillion

7 0
3 years ago
You own a portfolio equally invested in a Rf asset and two stocks. If one of the stocks has a beta of 1.85 and the total portfol
12345 [234]

Answer:

1.15

Explanation:

If investment is made in equal proportions, it means that;

weight in risk free ; wRF = 33.33% or 0.3333

Let the stocks be A and B

weight in stock A ; wA = 33.33% or 0.3333

weight in stock B; wB = 33.33% or 0.3333

Beta of A; bA = 1.85

Let the beta of the other stock be represented by "bB"  

Beta of risk free; bRF = 0

Beta of portfolio = 1 since it is mentioned that "the total portfolio is equally as risky as the market "

The weight of portfolio is equal to the sum of the weighted average beta of the three assets. The formula is as follows;

wP = wAbA + wBbB + wRF bRF

1 = (0.3333 * 1.85) + (0.3333*bB) + (0.3333 *0)

1 = 0.6166 +0.3333bB + 0

1 - 0.6166 = 0.3333bB

0.3834 = 0.3333bB

Next, divide both sides by 0.3333 to solve for bB;

bB = 0.3834/0.3333

w=bB = 1.15

Therefore, the beta for the other stock would be 1.15

5 0
3 years ago
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