Under what circumstances is a merger unlikely to be approved?
What will be an ideal response?
A merger is likely to be approved by the Justice Department as long as the pre-merger HHI is less than 1,500 . If the pre-merger HHI is between 1,500 and 2,500, the merger would be challenged if it raises the HHI by 100 or more points. If the pre-merger HHI is greater than 2,500, the merger generally would be blocked if it raises the HHI index by 200 or more points.
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The production function describes: a. the relationship between the quantity of inputs utilized and the quantity of output produced. b. how inputs are most profitably used in production
c. the most cost-effective method of combining various inputs in the production process. d. the relationship between a firm's revenue and its level of production.
A market that mainly stresses product differentiation is called
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.
When more firms enter an industry:
A. the amount produced by each of the new firms will be less than the amount produced by each of the original firms. B. the industry supply curve will shift right. C. the industry supply curve will shift left. D. the amount produced by each of the new firms will be greater than the amount produced by each of the original firms.
The own price elasticity of demand for apples is ?1.2. If the price of apples falls by 5 percent, what will happen to the quantity of apples demanded?
A. It will increase 6 percent. B. It will fall 4.3 percent. C. It will increase 5 percent. D. It will increase 4.2 percent.