According to current Justice Department guidelines, mergers in an industry are seldom challenged if the industry
a. would have a postmerger Herfindahl index greater than 1,800
b. would have a postmerger Herfindahl index less than 1,000
c. has a premerger Herfindahl index greater than 1,800
d. has a premerger Herfindahl index less than 1,000
e. has a premerger Herfindahl index equal to 10,000
Question 2
If a market is allocatively efficient,
a. firms are minimizing marginal cost
b. firms are minimizing total cost
c. consumers are minimizing expenditures
d. it must be impossible to increase total utility
e. it must be impossible to decrease output
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