If an Industry Currently Has a Herfindahl Index of 900

question 155

Multiple Choice

If an industry currently has a Herfindahl index of 900 and a merger would raise that to 950, then the Department of Justice would generally

• A)challenge the merger because the index would become too large
• B)challenge the merger because the change in the index is too large
• C)not challenge the merger because the postmerger index is less than 1, 800
• D)not challenge the merger if it is a horizontal merger
• E)challenge the merger if it is a vertical merger

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