If a Firm with a 20 Percent Market Share Merges

question 179

Multiple Choice

If a firm with a 20 percent market share merges with a firm with 5 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares.

• A)It rises by 100.
• B)It rises by 200.
• C)It falls by 100.
• D)It falls by 200.
• E)It rises by 25.

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Definitions:

Bulla

An elevated, fluid-filled blister more than 5 mm in diameter that forms on the skin or mucous membranes.

Wheal

A small, raised, and often itchy area on the skin, typically resulting from an allergic reaction or as part of certain skin tests.

Confluent

Merging or flowing together, often used to describe skin lesions that have joined together.

Annular Lesions

Skin lesions that are circular or ring-shaped, often seen in conditions like ringworm or granuloma annulare.