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.

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Definitions:

Overexpressing

Showing or articulating an emotion, thought, or feeling to an excessive or exaggerated degree.

Suppressing

The act of consciously holding back or restraining emotions, thoughts, or actions that are considered unacceptable or unwanted.

Behavior

The observable actions or reactions of an individual or group in response to external or internal stimuli.

Activating Events

Incidents or occurrences that trigger emotional responses, potentially affecting an individual's behavior or attitudes.