Question

The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.

A. True
B. False

Answer 1

True

Step-by-step explanation:

One way of determining if acquisitions would lessen competition is through the calculation of the HHI. if the HHI of the industry is more than 1500 before the acquisition and the HHI changes by more than 50 after the acquisition, the government would challenge the merger