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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A fall in the domestic interest rate leads to capital
A. outflows and exchange rate appreciation. B. outflows and exchange rate depreciation. C. inflows and exchange rate depreciation. D. inflows and exchange rate appreciation.
New money is created in the U.S. economy by
A) increased federal government expenditures. B) banks that create checkable deposits. C) the U.S. Treasury. D) U.S. Department of Mint. E) the U.S. Congress.
Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if
A) the price level increased. B) real GDP decreased. C) the interest rate decreased. D) the Federal Reserve sold Treasury securities.
If a firm doubles its resources and generates an output level which is more than double, it is said to be experiencing:
a. economic fluctuations. b. recession. c. diseconomies of scale. d. increasing marginal returns to a factor. e. economies of scale.