Luminescent Silicon Corporation,which Controls 40 Percent of the Computer-Chip Market

question 15

Multiple Choice

Luminescent Silicon Corporation,which controls 40 percent of the computer-chip market in the United States,merges with Micro Processors,Inc.,which controls 15 percent of the same market.This merger is

• A)a violation only if the result more clearly concentrates the market.
• B)a violation only if the result makes it more difficult for potential competitors to enter the market.
• C)a violation if the result more clearly concentrates the market and makes it more difficult for potential competitors to enter the market.
• D)not a violation.

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Definitions:

End of the period

Refers to the conclusion of an accounting period, at which financial statements are prepared.

Net realizable value

The estimated selling price of goods, minus the cost of their sale or disposal.

Damaged merchandise

Goods that have been physically harmed or impaired, reducing their value or usefulness.

Below cost

describes selling a product at a price less than its production or acquisition cost, often to clear inventory or attract customers.