Which of the Following Is Most Likely to Increase the Herfindahl

question 200

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

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Definitions:

Strict Guidelines

Rigorous and precise instructions or rules that must be followed carefully.

Sales Proposal

A written document designed to offer products or services to potential buyers, outlining the benefits, pricing, and terms of the sale to persuade the customer to make a purchase.

Incongruous

Incongruous refers to something that is not in harmony or keeping with the surroundings or other aspects of something, often leading to a sense of discrepancy or inconsistency.

Distorted

The term distorted describes something that has been twisted out of its original, true, or natural shape, often leading to a misrepresentation of reality.