The U.S. beer industry has an HHI of 3,525. If two beer producers propose a merger that would increase the industry HHI by 25 points, then the merger would be challenged based on the change in the HHI.

Question

Quizplus · Accepted Answer

A change of 25 points in the HHI is generally considered small, and the U.S. Department of Justice and Federal Trade Commission typically scrutinize mergers that increase the HHI by more than 100 points in moderately concentrated markets (HHI between 1500 and 2500) or 200 points in highly concentrated markets (HHI above 2500).

The US Beer Industry Has an HHI of 3,525