Suppose That Firm B in This Table Was Found Guilty

question 162

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:

Subjectivity

The influence of personal feelings, tastes, or opinions in decision-making or perception.

Suppliers

Entities that provide goods or services to another entity, typically within a supply chain or business process.

Bullwhip Measure

Refers to the calculation of the variation in demand and inventory levels within a supply chain, illustrating how slight changes in consumer demand can lead to larger variances in orders placed upstream.

Dampening Scenario

A situation where fluctuations in demand or supply are reduced or stabilized to minimize the impact on operations or planning.