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.
Correct Answer:
Verified
Correct Answer:
Verified
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