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QUESTION 51 Firm A B C D E Market Share (%) 40 30 20 5 5...

QUESTION 51

Firm A B C D E

Market Share (%) 40 30 20 5 5

Refer to the data. If Firm B merged with Firm C, the industry's four-firm concentration ratio would ________ and its Herfindahl index would ________.

Select one:

A. fall; rise

B. remain the same; fall

C. rise; rise

D. remain the same; rise

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Answer #1

The correct answer is (c) rise, rise

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