Article Summary
In an attempt to get approval for a $6.3 billion merger with Office Depot,Staples met with FTC regulators to discuss the possible sale of assets so the merger can proceed.The Competition Bureau of the FTC had previously indicated that it would not approve the merger as initially structured,but Staples expressed optimism that it would be able to reach a settlement with the FTC.Critics have argued that a merger of Staples and Office Depot will result in higher prices for office supplies.
-Refer to the Article Summary.The standards used by the Department of Justice and the FTC to evaluate a potential merger such as the one between Staples and Office Depot are based on market concentration as determined by the
A)Herfindahl-Hirschman Index.
B)Clayton Antitrust Act.
C)Anti-Collusion Task Force.
D)Robinson-Patman Act.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index is commonly used by the Department of Justice and the FTC to evaluate market concentration in a potential merger. This index measures the market share of each firm involved in a merger and provides a score that is used to determine the potential anti-competitive effects of the merger.

Article Summary In an Attempt to Get Approval for a $6.3 Billion