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Which of the Following Is Most Likely to Increase the Herfindahl

Question 200

Multiple Choice

Which of the following is most likely to increase the Herfindahl index of a particular industry?


A) a horizontal merger between two of the industry's largest firms
B) a vertical merger between one of an industry's largest firms and one of the many input suppliers in the resource market
C) a conglomerate merger involving one of the industry's major firms
D) an agreement by all the industry firms to divide up the market among them

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