Suppose an Industry Consists of Five Equal-Sized Firms

question 68

Multiple Choice

Suppose an industry consists of five equal-sized firms. Two of the firms plan to merge. The merger ______________ raise anti-trust concerns at the Justice Department given that the Herfindahl index before the merger was _____________ and the merger would cause the Herfindahl index to rise by __________.

• A)would; between 1,000 and 1,800; more than 100
• B)would; greater than 1,800; more than 100
• C)would not; less than 1,000; less than 300
• D)would not; between 1,000 and 1,800; less than 100

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Definitions:

Middle Managers

Employees who manage other managers or advanced professionals, acting as an intermediary between top management and front-line employees.

Overall Operations

Encompasses the total processes and activities undertaken by an organization to produce goods or provide services, including production, logistics, and management functions.

Effective Managers

are individuals who achieve desired results through the efficient use of resources and the successful direction of their team members.

High Performance

Achieving significantly better outcomes or efficiencies than standard or expected levels, often through excellence in execution and strategy.