According to the Justice Department and the Federal Trade Commission, a merger would likely be challenged if

Question

Quizplus · Accepted Answer

The Justice Department and the Federal Trade Commission use the Herfindahl-Hirschman Index (HHI) to assess the potential anti-competitive effects of mergers. A merger is likely to be challenged if it results in a highly concentrated market, typically indicated by an HHI above 2,500, and the HHI increases by more than 200 points. However, an HHI above 1,000 with a significant increase can also raise concerns, making option A the closest correct choice.