Article Summary In an Attempt to Get Approval for a $6.3 Billion

question 51

Multiple Choice

Article Summary
In an attempt to get approval for a $6.3 billion merger with Office Depot, Staples met with FTC regulators to discuss the possible sale of assets so the merger can proceed. The Competition Bureau of the FTC had previously indicated that it would not approve the merger as initially structured, but Staples expressed optimism that it would be able to reach a settlement with the FTC. Critics have argued that a merger of Staples and Office Depot will result in higher prices for office supplies.
Source: Josh Kosman, "Staples still angling for Office Max merger," New York Post, October 14, 2015.
-Refer to the Article Summary above.A merger between two competitors such as Staples and Office Depot may ultimately be approved by the Department of Justice and the FTC if the two companies can substantiate ________ as a result of the merger.

• A)increases in revenue for the merged company
• B)an increase in the HHI to over 1,800
• C)decreases in marginal revenue for the merged company
• D)increases in economic efficiency

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Definitions:

Miscellaneous Near-Monies

Highly liquid financial assets that can be quickly converted into cash but are not cash themselves, such as savings accounts and time deposits.

Risk of Loss

The probability or chance that an investment's actual return will be different than expected, including losing some or all the original investment.

Different Loans

A variety of borrowing options available to individuals or entities, each with unique terms, interest rates, and purposes.

Depositors

Individuals or entities that place their money in a financial institution such as a bank, for the purpose of saving or earning interest.