74. The horizontal merger leading to the following changes in Herfindahl-Hirschm

Question

74. The horizontal merger leading to the following changes in Herfindahl-Hirschman Indexes that is virtually certain to be challenged by the government is from:
A) 650 to 740.
B) 900 to 1,800.
C) 1,125 to 1,130.
D) 1,200 to 1,210.

75. The horizontal merger leading to the following changes in Herfindahl-Hirschman Indexes that is unlikely to be challenged by the government is from:
A) 260 to 1,320.
B) 400 to 480.
C) 580 to 1,200.
D) 920 to 1,450.

76. Selling below cost by foreign firms is called:
A) dumping.
B) undercutting.
C) unfair competition and is punishable under the Clayton Act.
D) unpatriotic.

Explanation / Answer

For 74, B will certainly be challenged by the government because the post-merger value is greater than 1000, and the increase is greater than 100. For 75, B will not be challenged because the post-merger value is less than 1000. For 76, selling below cost by foreign firms is called A, dumping.

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