If the Herfindahl-Hirschman Index of an industry is less than 1,000, then the Antitrust Division of the Justice Department
A) will challenge any merger that would increase the index by over 100 points.
B) considers the industry unconcentrated.
C) considers the industry already concentrated.
D) will challenge any merger that raises the index by more than 50 points.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, and an HHI below 1,000 indicates an unconcentrated industry according to the guidelines used by the Antitrust Division of the Justice Department.

If the Herfindahl-Hirschman Index of an Industry Is Less Than