2. A merger of several firms operating in different industries-for example, a tr
ID: 1128593 • Letter: 2
Question
2. A merger of several firms operating in different industries-for example, a trucking company, a chain, and a brokerage house-is called: A. an integrated merger. B. a conglomerate merger. C. a vertical merger. D. a horizontal merger. 3. Conspiracies to fix prices are: A. illegal under the Clayton Act B. illegal under the Celler-Kefauver Act C. per se violations of the antitrust laws. Answer the next question on the basis of the following table showing market shares of firms in hypoth industries. Assume these are distinct industries with no buyer-seller relationships or competition amon Market share of firms in industry Industry 1 2 3 30 30 20 20 80 10 5 31 Alpha Beta Cappa 25 25 25 25 Delta 20 20 20 20 10 10 4. Refer to the above table. The Herfindahl index for Cappa is: A. 2,500. B. 100. C. 100,000.Explanation / Answer
2. B Conglomerate merger
Explanation: When firms from totally unrelated businesses merge together, the merger is called conglomerate merger.
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