Article Summary In Late 2017, Informed Sources Announced That Telecommunications Companies T-Mobile

question 252

Multiple Choice

Article Summary
In late 2017, informed sources announced that telecommunications companies T-Mobile and Sprint were engaged in active discussions about a potential merger. The 3rd and 4th largest wireless carriers in the United States have had frequent conversations about a stock-for-stock merger, with T-Mobile parent Deutsche Telekom becoming the majority owner of the combined firms and T-Mobile CEO John Legere expected to lead the company. Part of the discussions have been whether the Department of Justice and the Federal Trade Commission would approve the merger, and based on those discussions, whether both companies will choose to proceed with a deal.
Source: David Faber, "T-Mobile and Sprint are in active talks about a merger," cnbc.com, September 19, 2017.
-Refer to the Article Summary.A merger between two competitors such as T-Mobile and Sprint 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 2,500
• C)decreases in marginal revenue for the merged company
• D)increases in economic efficiency

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Definitions:

Esters

Organic compounds derived from carboxylic acids in which the hydrogen of the carboxyl group is replaced by a hydrocarbon group, often responsible for the sweet or fruity aromas and flavors of many fruits and flowers.

Aldehydes

Organic compounds characterized by a carbonyl group bonded to at least one hydrogen atom, making them highly reactive.

Carboxylic Acid Derivative

Compounds obtained by substituting the hydroxyl group in carboxylic acids with other functional groups like halides, amides, or esters.

β-Hydroxybutyronitrile

An organic compound featuring a hydroxyl group (–OH) and a nitrile group (–CN) on a four-carbon chain, positioned beta (β) to each other.