The Justice Department is most likely to oppose a proposed merger on the basis of the Herfindahl-Hirschman Index when the post-merger HHI is:
A)less than 100.
B)less than 1000.
C)between 1000 and 1800.
D)greater than 1800.

Question

Quizplus · Accepted Answer

The Justice Department is most likely to oppose a proposed merger when the post-merger HHI is greater than 1800. This is because an HHI above 1800 is considered a highly concentrated market, indicating that the merger could harm competition and potentially harm consumers with higher prices or reduced quality.

The Justice Department Is Most Likely to Oppose a Proposed