The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1575 and two of the competing banks have considered merging. Because the merger would raise the HHI by 55 points, the Federal Trade Commission would likely
A) challenge the merger.
B) not challenge the merger.
C) allow the merger under the condition that HHI does not rise by more than 55 points as promised.
D) allow the merger under the condition that the HHI remain at the premerger level of 1575.
B
You might also like to view...
In the long run, _________ growth is the most important factor in shifting the AS curve.
a. consumption b. productivity c. savings d. population
The ultimatum game reveals that
a. it does not make sense to try to maximize profits. b. people may have an innate sense of fairness that economic theory does not capture. c. offering someone a wildly unfair outcome is usually ok since people tend to make decisions using a "something is better than nothing" philosophy. d. Both a and b.
Sticky nominal wages can result in
a. lower profits for firms when the price level is lower than expected. b. a decrease in real wages when the price level is lower than expected. c. a short-run aggregate-supply curve that is vertical. d. a long-run aggregate-supply curve that is upward-sloping.
The most volatile part of wealth is
A. transfer payments. B. Bonds. C. the stockmarket. D. savings accounts.