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Suppose That an Industry Has a Premerger Herfindahl-Hirschman Index (HHI)

Question 170

Multiple Choice

Suppose that an industry has a premerger Herfindahl-Hirschman Index (HHI) of 2,499 and two firms in that industry are trying to merge. Based on the given information, which statement is TRUE?


A) The merger is likely to be approved.
B) The merger is likely to be approved if it raises the HHI by less than 200 points.
C) The merger is likely to be challenged.
D) The merger is likely to be disapproved.

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