If a Firm with a 10 Percent Market Share Merges

question 55

Multiple Choice

If a firm with a 10 percent market share merges with a firm with 15 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares.

• A)It rises by 100.
• B)It rises by 300.
• C)It falls by 200.
• D)It falls by 250.
• E)It rises by 25.

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Definitions:

Turnover

The rate at which personnel vacate their positions within a company and are succeeded by new recruits.

Human Relations Movement

A management approach emphasizing the importance of understanding human behavior, interpersonal relationships, and employee needs in the workplace.

Hawthorne Studies

Research conducted in the 1920s and 1930s at the Hawthorne plant of Western Electric, near Chicago, that illustrated how psychological and social processes affect productivity and work adjustment.

Hawthorne Studies

A series of experiments on worker productivity conducted at the Hawthorne Works plant in the 1920s and 1930s, which found that employees' performance could be influenced by attention and social factors.