Suppose that a market is made up of 12 firms: Firms 1 and 2 each have 10% market share. The other ten firms, firms 3 through 12, have 8% market share each. The value of the Herfindahl Index (HHI) in this market is 840 and the Justice Department is not likely to challenge a merger between firm 2 and form 3. The value of the Herfindahl Index (HHI) in this market is 840 and the Justice Department is likely to challenge a merger between firm 2 and form 3. The value of the Herfindahl Index (HHI) in this market is 2,120 and the Justice Department is not likely to challenge a merger between firm 2 and firm 3. The value of the Herfindahl Index (HHI) in this market is 2,120 and the Justice Department is likely to challenge a merger between firm 2 and firm 3. From a consumer perspective, advertising may be beneficial if it: creates a demand for a firm's specific product. O it informative and enables sellers to make profit-maximizing pricing decisions. leads to innovation and product variety. decreases the price elasticity of demand coefficient for many products. Under the law, advertisers must have proof to back up express claims only if competitors file a complaint with the Federal Trade Commission regarding the ad. The above statement is true. The above statement is false. As a share of U.S. GDP, the largest spending component is: personal consumption expenditures. gross private domestic investment. federal, state, and local government expenditures. net exports. The largest component of Personal Consumption Expenditures (PCE) for U.S. households is spending on: consumer durables because things like cars and washing machines are expensive compared to things like food and clothing consumer nondurables because most Americans spend the majority of their monthly budget on food and household items such as toilet paper and cleaning supplies. health services because the cost of medical care has been increasing at an increasing rate at a time when the American population is aging, services because spending on housing is included in spending on consumer services