Which of the Following Measures Is Used by the Justice

question 2

Multiple Choice

Which of the following measures is used by the Justice Department to evaluate the competitive effects of proposed mergers?

• A)The Lerner Index.
• B)The eight-firm concentration ratio for an industry.
• C)The four-firm concentration ratio for an industry.
• D)The Herfindahl-Hirschman Index.

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Definitions:

Holder

An individual or entity that legally possesses a negotiable instrument, like a check or promissory note, and has the right to enforce it.

FTC

The Federal Trade Commission, a U.S. federal agency responsible for consumer protection and the prevention of anti-competitive business practices.

Negotiable Installment Notes

Debt instruments that promise repayments in a series of payments and are transferable to others.

Finance Companies

Businesses that provide loans to individuals or corporations, excluding banks and other traditional financial institutions.