According to U

question 169

Multiple Choice

According to U.S. antitrust enforcement guidelines, a merger is likely to be challenged if

• A) the HHI decreases after the merger.
• B) the industry after the merger has an HHI above 1,800 and the HHI rises by more than 100.
• C) the industry after the merger has an HHI above 1,800 and the HHI falls by more than 100.
• D) the industry after the merger has an HHI above 1,000 and the HHI rises by more than 10.

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Definitions:

Total Revenue Line

A financial metric representing the total amount of money generated from sales before any expenses are subtracted.

Sales Mix

The proportion of different products or services that a company sells, representing the combination of sales that impacts overall profitability.

Total Profits

The sum of net income or net earnings of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Contribution Margin Ratio

A financial metric that calculates the proportion of revenue that exceeds total variable costs, thus indicating how much revenue contributes to fixed costs and profits.