Suppose That There Are 10 Firms in an Industry, Each

question 347

Multiple Choice

Suppose that there are 10 firms in an industry, each accounting for 10 percent of industry sales. Two of these firms decide to merge. Which of the following statements about the impact of this merger is (are) INCORRECT?

• A) The merger causes the four-firm concentration ratio to increase from 40 to 50.
• B) The merger causes the HHI to increase by 100.
• C) The merger will not change the HHI unless the industry's sales increase.
• D) Both answers A and C are incorrect.

---

Definitions:

Update Query

A type of database query used to modify the values of fields in existing records based on specific criteria.

Supervisor Name

A data field that typically refers to the name of an individual's direct superior or manager within an organizational structure.

Delete Query

A type of SQL command used to remove rows from a table based on a specific condition.

Retired Employees

Refers to individuals who have ended their professional career and are no longer actively working, often due to reaching a certain age or fulfilling employment tenure requirements.