Suppose that there are 10 firms in an industry, each accounting for 10 percent of industry sales. Two of these firms decide to merge. Which of the following statements about the impact of this merger is (are) INCORRECT?
A) The merger causes the four-firm concentration ratio to increase from 40 to 50.
B) The merger causes the HHI to increase by 100.
C) The merger will not change the HHI unless the industry's sales increase.
D) Both answers A and C are incorrect.
B
Economics
You might also like to view...
For a monopoly, the market demand curve is the firm's
A) supply curve. B) marginal revenue curve. C) demand curve. D) profit function.
Economics
Which of the following is the best statement about how the amount of the net public debt that a typical individual owes to the holders of the debt has varied in the recent past?
A. The amount has steadily decreased over time. B. The amount has varied a lot over time. C. The amount has not varied at all. D. The amount has steadily increased over time.
Economics