The Justice Department Has Been Asked to Review a Merger

question 57

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 C acquires Firm D, what is the HHI for the new market?

• A) 100
• B) 160
• C) 6,796.875
• D) 17,400.00

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Definitions:

Coupons Redeemed

The act of exchanging a coupon for a discount, product, or service, usually part of a promotional offering.

Premium Expense

The cost associated with purchasing an insurance policy or the amount over the face value paid for a bond or stock.

Coupon Redemption

The process of exchanging a coupon for the value or discount it represents when purchasing goods or services.

Recipe Book

A collection of culinary recipes and guidelines for preparing food.