Author Question: There are 30 firms in an industry. What happens to that industry's four-firm concentration when the ... (Read 93 times)

JGIBBSON · **on:** Jun 29, 2018

There are 30 firms in an industry. What happens to that industry's four-firm concentration when the third- and fourth-largest firms merge?

A) Nothing, because their shares are already included in the concentration calculation.
B) The industry's concentration ratio will fall.
C) The industry's concentration ratio will increase.
D) It is impossible to know without more information.

Question 2

Commonwealth Edison is the only provider of electricity to many households in the Chicago area. Commonwealth Edison is regulated by the government. This type of regulation is known as

A) the Federal Register.
B) social regulation.
C) the market share test.
D) economic regulation.