Suppose that two firms in an industry with a Herfindahl index of 5,000 announce a merger. The U.S. Justice Department concludes the merger will boost the index to 5,500. The antitrust authorities will most likely
A) ignore this merger because of the relatively small increase in the Herfindahl index.
B) allow the merger but watch the new firm carefully for future violations of the antitrust laws.
C) allow the merger if foreign entry to the industry is possible.
D) prevent the merger, contending that it violates the Clayton Act.
Correct Answer:
Verified
Q95: Q96: A firm charged with monopolizing a market Q97: Suppose the firms in a five-firm industry Q98: A conglomerate merger Q99: Which of the following is correct? Q101: The view that the antitrust laws need Q102: Which of the following is characteristic of Q103: Critics of industrial regulation say that such Q104: Suppose the transportation industry has been regulated Q105: Which one of the following is concerned![]()
A)can extend the line of
A)Vertical mergers
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