Holey Doughnuts and Clair's Eclairs Want to Merge

question 16

Multiple Choice

Holey Doughnuts and Clair's Eclairs want to merge. Each has a 2 percent share in the local pastry market. It is most likely that:​

• A)the Department of Justice will challenge the merger but the Federal Trade Commission will not.
• B)the Federal Trade Commission will challenge the merger but the Department of Justice will not.
• C)the merger will go unchallenged because it will not tend to reduce competition.
• D)the government will successfully challenge the merger because it is a horizontal merger.
• E)the government will successfully challenge the merger because it is a vertical merger.

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Definitions:

Normal Distributions

A distribution where the likelihood of data occurring decreases as the distance from the mean increases, all the while maintaining a symmetrical shape around the mean.

Discrete Random Variable

A random variable that can take on only a finite or countably infinite set of distinct values.

Text Messages

Short, digital communications sent over cell phone networks.

Probability Distribution

A mathematical description of the range of possible outcomes of a random variable, including the frequency or probability of each outcome.