The Justice Department Has Been Asked to Review a Merger

question 45

Multiple Choice

The Justice Department has been asked to review a merger request for a market with the following four firms.
$$\begin{array} { c r } \text { Fim } & \text { Assets } \\\text { A } & \$ 10 \text { million } \\B & 20 \text { million } \\\text { C } & 100 \text { million } \\\text { D } & 30 \text { million }\end{array}$$
If Firm A acquires Firm D, what is the HHI for the new market?

• A) 100
• B) 625
• C) 3,906.25
• D) 4,687.50

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Definitions:

Unstable External

Contexts or environments that are unpredictable and change frequently, affecting behavior or performance.

Stable External

Factors outside of an individual that are consistent and unchanging, often influencing behavior and perceptions.

Incremental

Describes a process of making changes or improvements in small, gradual steps rather than large, significant leaps.

Entity

Something that exists as a particular and discrete unit, often referred to in philosophy, law, and technology.