Merger Guidelines Developed by the U

question 119

Multiple Choice

Merger guidelines developed by the U.S.Department of Justice and the Federal Trade Commission use the Herfindahl-Hirschman Index as a measure of concentration.This index measures concentration in an industry by

• A)adding up the market shares of all firms in the industry, squaring this number and then dividing by the number of firms in the industry.
• B)squaring the market shares of each firm in an industry and then adding up the values of the squares.
• C)squaring the four-firm concentration ratio of the industry and dividing this number by the total number of firms in the industry.
• D)determining the market shares of the four largest firms in the industry, but unlike the concentration ratio, the Index includes sales in the United States by foreign firms.

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Definitions:

Blood Types

The classification of human blood based on the presence or absence of inherited antigenic substances on the surface of red blood cells, which includes A, B, AB, and O types.

Mendelian Genetics

The branch of genetics based on the principles of inheritance proposed by Gregor Mendel, explaining how traits are transmitted from parents to offspring.

Multiple Alleles

Inheritance pattern in which there are more than two alleles for a particular trait; each individual has only two of all possible alleles.

HERC2

A gene associated with the regulation of several proteins, notably impacting pigmentation and neurological functions.