The Government Uses ________ Figures Contained in the Herfindahl-Hirschman Index

question 164

Multiple Choice

The government uses ________ figures contained in the Herfindahl-Hirschman Index (HHI) to help determine whether or not it will challenge a proposed merger.

• A) market share
• B) firm size
• C) barriers to entry
• D) profit

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.

Common Stock

A type of security representing ownership in a corporation, with holders having a claim on part of the company’s assets and earnings.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Profits

Profits represent the financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the operation.