If a firm with a 10 percent market share merges with a firm with 15 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares
a. It rises by 100.
b. It rises by 300.
c. It falls by 200.
d. It falls by 250.
e. It rises by 25.
B
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In 1791, Alexander Hamilton suggested
a. the abolishment of all state-chartered banks b. the creation of open market operations c. the creation of a nationally chartered bank d. the abolition of the money supply e. creative accounting to deny Revolutionary debt
The most fundamental concept in economics is that
a. changes in incentives influence behavior in a predictable way--people will be less likely to choose an option as it becomes more expensive. b. changes in incentives generally do not influence human behavior. c. goods that are provided by government are free for society. d. individuals generally do not consider other alternatives when making a choice.
The prime rate is the interest rate charged to a bank's best customers
a. true b. false
Country A is relatively land-abundant, and wheat is relatively land-intensive. Given the assumptions of the Heckscher-Ohlin model, the opening of trade by this country will cause the domestic price of wheat to
A. fall. B. remain unaffected. C. rise. D. rise at first, but then fall back to its original level.