Which of the following is most likely to increase the Herfindahl index of a particular industry?
A. A horizontal merger between two of the industry's largest firms.
B. A vertical merger between one of an industry's largest firms and one of the many input
suppliers in the resource market.
C. A conglomerate merger involving one of the industry's major firms.
D. An agreement by all the industry firms to divide up the market among them.
Answer: A
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a. $2,000 b. $8,000. c. $9,000 d. $10,000.
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