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Author Question: Competition from substitute goods is more of a threat when switching costs are high. Indicate ... (Read 56 times)

big1devin

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Competition from substitute goods is more of a threat when switching costs are high.
 
  Indicate whether the statement is true or false

Question 2

The Herfindahl-Hirschman Index is one factor used to determine whether a merger between two firms should be allowed. Which of the following statements regarding the value of the Index for a given industry is true?
 
  A) If a merger resulted in an Index of between 1,000 and 1,800, the industry would be considered competitive and the merger would not be challenged.
  B) If a merger would result in an Index value of 1,000 or more, the industry would be considered a monopoly and the merger would be challenged.
  C) If a merger would result in an Index value less than 1,000, the merger would not be challenged.
  D) If a merger would increase the Index by 100, the industry would be considered a monopoly and the merger would be challenged.


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nathang24

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big1devin

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


rachel

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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