In a 50-Firm Industry, Two of the Smallest Firms Merge

question 157

Multiple Choice

In a 50-firm industry, two of the smallest firms merge. Yet the 4-firm concentration ratio and the 8-firm concentration ratio did not change. All things considered, we can say that the industry has

• A) moved closer to pure competition because the number of firms decreased.
• B) moved farther away from competition because the number of firms decreased.
• C) experienced no change in competition even though the number of firms decreased.
• D) to be identified first; otherwise there is no way to tell.

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Definitions:

Insider Misappropriation

The illegal act of theft or improper use of insider information by a company insider to benefit from stock trades or other financial transactions.

Sixth Amendment Rights

Refers to the rights guaranteed by the Sixth Amendment to the U.S. Constitution, including the right to a speedy and public trial, an impartial jury, to be informed of the nature and cause of the accusation, to confront opposing witnesses, to have compulsory process for obtaining witnesses in one's favor, and to have the assistance of counsel for one's defense.

Unfair Proceedings

Legal processes or practices that lack impartiality, justice, or fairness, potentially violating the rights of those involved.

Guilty

A legal status of a person or entity that has been found to have committed an offense or crime as charged.