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 1,000 and 1,800 and the merger raises the Index by 50 points.
B)lies between 1,000 and 1,800 and the merger raises the Index by more than 100 points.
C)lies above 1,800 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 lies between 1,000 and 1,800 and the merger raises the index by more than 100 points. Therefore, option B is the correct choice.

According to the Department of Justice Merger Guidelines, a Proposed