Author Question: Suppose the Herfindahl-Hirschman Index (HHI) in the market for chocolate is 3,200. Two companies ... (Read 101 times)

armygirl · **on:** Jun 29, 2018

Suppose the Herfindahl-Hirschman Index (HHI) in the market for chocolate is 3,200. Two companies want to merge. The FTC definitely will challenge the merger if it increases the HHI by more than

A) 150 points.
B) 100 points.
C) 40 points.
D) 200 points.

Question 2

The Internet is nonrival, which means it's a public good. Do you agree or disagree? Explain.

What will be an ideal response?

shailee · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

The statement is incorrect. A public good is both nonrival and nonexcludable. Although the Internet is nonrival, it is excludable, which means that the Internet is a natural monopoly, rather than a public good.