If a postmerger Herfindahl-Hirschman index is _____, the merger will generally be challenged by the Department of Justice.
A) less than 1,000
B) between 1,000 and 1,800
C) greater than 1,800
D) unchanged

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, and mergers that result in an HHI greater than 1,800 often indicate a highly concentrated market, leading the Department of Justice to generally challenge such mergers due to concerns over reduced competition.

If a Postmerger Herfindahl-Hirschman Index Is _____, the Merger Will