Anheuser-Busch,InBev NV,the Maker of Bud Light,proposed a Merger with Modelo,the

question 153

Multiple Choice

Anheuser-Busch,InBev NV,the maker of Bud Light,proposed a merger with Modelo,the maker of Corona.At the time of the proposed merger,AB InBev NV held 39% of the beer market,Miller/Coors held 26%,Modelo held 7%,and Heineken,the last of the big four held 6%.Other beer makers combined hold the remaining 22% of the U.S.beer market.The combination would give AB InBev NV 46% of the market.Modelo has been one of the market players that has resisted the parallel price increases in the industry.​
-Which of the following statements is correct?

• A)The merger would raise questions at the Justice Department about market power.
• B)The merger would be approved because there are so many other competitors.
• C)The merger would be approved because there are so many different beers and the relevant market is defined by individual types of beers.
• D)The Sherman Act does not apply to alcohol companies.

---

Definitions:

Social Psychology

The scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Romantic Love

A deeply emotional and affectionate attachment to a partner, often characterized by passion, intimacy, and commitment.

Cultural Factors

Elements that vary from one society to another and influence different aspects of human behavior, such as beliefs, values, and customs.

Hyperkalemia

A condition characterized by an excessively high level of potassium in the bloodstream, potentially impacting heart function.