If an Industry Currently Has a Herfindahl Index of 900

question 155

Multiple Choice

If an industry currently has a Herfindahl index of 900 and a merger would raise that to 950, then the Department of Justice would generally

• A)challenge the merger because the index would become too large
• B)challenge the merger because the change in the index is too large
• C)not challenge the merger because the postmerger index is less than 1, 800
• D)not challenge the merger if it is a horizontal merger
• E)challenge the merger if it is a vertical merger

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Definitions:

Bulimia Nervosa

A condition in which a person develops a cycle of “bingeing,” or overeating enormous amounts of food at one sitting, and then using unhealthy methods to avoid weight gain.

Severe Depression

A psychological ailment manifested by an enduringly low mood or disinterest in hobbies, substantially interfering with normal life.

Major Depressive Disorder

A mental disorder characterized by persistent sadness, lack of interest in activities, and additional physical and cognitive symptoms, affecting daily functioning.

External Cause

External cause involves factors or events outside an individual that have an impact on their behavior or the outcome of a situation.