If Enforcement of Antitrust Laws Caused the Two Largest Firms

question 32

Multiple Choice

If enforcement of antitrust laws caused the two largest firms in this table to be divided in half, with each half having equal market share, the industry's four-firm concentration ratio would ____ and its Herfindahl index would ____.

• A)fall; fall
• B)fall; rise
• C)remain the same; rise
• D)remain the same; fall

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