Which of the following is not a reason for firms to merge?
A) to exercise greater market control
B) to diversify asset holdings
C) to increase control over suppliers
D) to lower the Herfindahl-Hirschman Index
E) to increase market share

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, and mergers typically increase rather than lower this index, as they reduce the number of competitors in a market, thereby increasing concentration.

Which of the Following Is Not a Reason for Firms