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 75 points, then the merger would be challenged based on the change in the HHI.

Question

Quizplus · Accepted Answer

The U.S. Department of Justice (DOJ) considers markets with an HHI above 2,500 to be highly concentrated, and any merger that increases the HHI by more than 100 points in such markets is likely to be challenged. Since the increase is only 75 points, strictly based on the change in HHI, it falls below the threshold that would typically trigger a challenge based on HHI change alone.

The US Beer Industry Has an HHI of 3,525