If the Herfindahl-Hirschman Index (HHI) Among the Firms in the Long

question 17

Multiple Choice

If the Herfindahl-Hirschman index (HHI) among the firms in the long distance telecommunications market were equal to 1755, when would the Federal Trade Commission probably challenge a proposed merger between any two of the firms?

• A) It would challenge if the HHI would increase by more than 50 points.
• B) It would challenge if the HHI would increase by more than 100 points.
• C) It would challenge no matter what happened to the HHI because the market has so few firms.
• D) It would not challenge because the HHI is less than 1800.

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