The Herfindahl-Hirschman Index (HHI) is used to determine whether the Justice Department will challenge a ________.

Question

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The HHI is typically used to evaluate horizontal mergers, which involve two companies that are direct competitors in the same industry. The HHI measures the concentration of market share in a given industry, and a high HHI indicates high concentration and potential anti-competitive effects. The Justice Department may challenge a proposed horizontal merger if the resulting HHI exceeds a certain threshold, typically 2500.

The Herfindahl-Hirschman Index (HHI) Is Used to Determine Whether the Justice