Morgan and Stanley Are the Owners of the Two Largest

question 15

Multiple Choice

Morgan and Stanley are the owners of the two largest nail manufacturing businesses in Western Australia.Morgan and Stanley decide to merge to form a single business to take advantage of the economies of scale.In which of the following scenarios is the merger least likely to be objected to by the ACCC?

• A)The merged business will be able to sustain significantly reduced prices that undercut smaller businesses for at least a year.
• B)The merged business will have a 65% market share; more than triple the market share of its nearest competitor.
• C)The merger will lead to an overall drop in the price of nails for consumers.
• D)The merger will result in substantial job losses for the employees of both companies.

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Definitions:

Non-monetary Compensation

Compensation that is provided in forms other than cash payments, such as benefits, perks, or other non-cash rewards.

Work and Personal Lives

The interaction and balance between an individual's professional responsibilities and personal life outside of work.

Employee Bonus

Additional compensation given to employees beyond their regular salary, often as a reward for achieving performance targets or for exceptional service.

Reward Performance

Implementing incentives or recognition for individuals or teams based on their achievements or output, typically to motivate and encourage desired behaviors or outcomes.