When is the Department of Justice less likely to allow a merger? ...

[Brittanyd9008]

When is the Department of Justice less likely to allow a merger?
 
  What will be an ideal response?

Question 2

The ________ of a future payment is the amount of money that would need to be invested today to produce the future payments.
 
  A) implicit value
  B) explicit value
  C) present value
  D) real value

[pami445]

Answer to Question 1

The Department of Justice (DOJ) reviews merger cases and decides whether the main objective is to increase market power or whether there are important efficiency gains from such a merger. One of the main approaches the DOJ adopts in its analysis of mergers is to calculate how concentrated an industry is. An industry is deemed concentrated when a few firms account for a large fraction of total sales in that industry. When a merger stands to increase concentration significantly, the DOJ is less likely to allow the merger.

Answer to Question 2

C

[Brittanyd9008]

TYSM

[mjenn52]

Gracias!