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An Industry Has a Single Firm and Is Found to Have

Question 157

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An industry has a single firm and is found to have violated antitrust laws. The government breaks it up into two firms that will share the market equally. The Herfindahl index for this industry would change from


A) 100 to 50.
B) 10,000 to 2,500.
C) 100,000 to 50,000.
D) 10,000 to 5,000.

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