Refer to Figure 5-16. What is the optimal quantity of street lights to install?

Suppose there are 100 firms of equal size currently sharing the market for peanut butter. If 12 of these firms merge, how much will the Herfindahl-Hirschman Index change?

a. increase by 144 b. decrease by 144 c. increase by 132 d. decrease by 132 e. increase by 232

Which of the following are options available to government when dealing with monopolies?

a. b, c, and e b. nationalization c. marginal cost pricing regulation d. marginal revenue pricing regulation e. breaking up the firm