Suppose That Firm B in This Table Was Found Guilty

question 153

Multiple Choice

Suppose that Firm B in this table was found guilty of antitrust violations and split into two firms with equal market share.This would cause the Herfindahl index to

• A)rise to 2,500.
• B)fall to 2,500.
• C)fall to 2,450.
• D)rise to 2,450.

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Definitions:

Medical Expenses

Costs for healthcare services that can include but are not limited to, treatments, diagnostics, and medications.

Long Form

Refers to more detailed versions of documents or forms that require extensive information, such as the IRS 1040 form for taxes.

1040 Form

A standard IRS form used by individuals to file their annual income tax returns.

Interest Income

Earnings from investments in savings accounts, bonds, CDs, or other interest-bearing accounts.