The Herfindahl-Hirschman Index is one factor used to determine whether a merger between two firms should be allowed. Which of the following statements regarding the value of the Index for a given industry is true?
A) If a merger resulted in an Index of between 1,000 and 1,800, the industry would be considered competitive and the merger would not be challenged.
B) If a merger would result in an Index value of 1,000 or more, the industry would be considered a monopoly and the merger would be challenged.
C) If a merger would result in an Index value less than 1,000, the merger would not be challenged.
D) If a merger would increase the Index by 100, the industry would be considered a monopoly and the merger would be challenged.
C
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In the above figure, what is the quantity of workers that would be hired by a monopsonist?
A) Q1 B) Q2 C) Q3 D) Q4
Most economists believe that a cut in tax rates
a. would generally increase government tax revenue. b. would have no effect on aggregate demand. c. has a relatively small effect on the aggregate-supply curve. d. All of the above are correct.