There are 30 firms in an industry. What happens to that industry's four-firm concentration when the third- and fourth-largest firms merge?
A) Nothing, because their shares are already included in the concentration calculation.
B) The industry's concentration ratio will fall.
C) The industry's concentration ratio will increase.
D) It is impossible to know without more information.
Answer: C) The industry's concentration ratio will increase.
You might also like to view...
A decrease in the real interest rate outside of the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce
Scientists prefer to advance irrefutable theories, rather than refutable theories
Indicate whether the statement is true or false
Firms that participate in regular open market transactions with ________ are called primary dealers
A) commercial banks B) Treasury banks C) the Federal Reserve D) mortgage lenders
Which of the following programs are in cash?
A. AFDC/TANF B. AFDC/TANF and EITC C. WIC D. EITC