Suppose that two firms in an industry that has a Herfindahl index of 1,000 announce a merger. The U.S. Justice Department concludes the merger will boost the index to 1,050. The antitrust authorities will most likely Multiple Choice allow the merger, but only if foreign entry to the industry is possible. ignore this merger because of the relatively small size of, and increase in, the Herfindahl index. prevent the merger. allow the merger, but strictly regulate the prices set by the new combi ned firm
Suppose that two firms in an industry that has a Herfindahl index of 1,000 announce a merger. The U.S. Justice Department concludes the merger will boost the index to 1,050. The antitrust authorities will most likely Multiple Choice allow the merger, but only if foreign entry to the industry is possible. ignore this merger because of the relatively small size of, and increase in, the Herfindahl index. prevent the merger. allow the merger, but strictly regulate the prices set by the new combi ned firm
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter16: Government Regulation
Section: Chapter Questions
Problem 3E
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Suppose that two firms in an industry that has a Herfindahl index of 1,000 announce a merger. The U.S. Justice Department concludes the merger will boost the index to 1,050. The antitrust authorities will most likely
Multiple Choice
allow the merger, but only if foreign entry to the industry is possible.
ignore this merger because of the relatively small size of, and increase in, the Herfindahl index.
prevent the merger.
allow the merger, but strictly regulate the prices set by the new combi
ned firm.
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