Suppose that an industry has an HHI of 1,900.Two firms in the industry want to merge.Under which conditions will the Federal Trade Commission challenge the merger?
A) The market is considered competitive, so the merger will not be challenged.
B) The merger will be challenged if it raises the HHI by 100 or more points.
C) The merger will be challenged if it raises the HHI by 50 or more points.
D) The merger will be challenged if it raises the HHI by 200 or more points.
E) The merger will be challenged if it raises the HHI by 500 or more points.
Correct Answer:
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