According to the Department of Justice merger guidelines, a proposed merger between two firms may be challenged if the post-merger Herfindahl-Hirschman Index
A)lies between 1,500 and 2,500 and the merger raises the Index by 50 points.
B)lies between 1,500 and 2,500 and the merger raises the Index by more than 100 points.
C)lies above 2,500 and the merger raises the Index by less than 50 points.
D)lies below 1,000 and the merger raises the Index by 100 points.

Question

Quizplus · Accepted Answer

According to the Department of Justice merger guidelines, a proposed merger between two firms may be challenged if the post-merger Herfindahl-Hirschman Index (HHI) lies between 1,500 and 2,500 and the merger raises the Index by more than 100 points. Therefore, option B is the correct choice as it satisfies this criterion.

According to the Department of Justice Merger Guidelines, a Proposed