If a pre- merger Herfindahl- Hirschman Index (HHI)is between _____, the market is considered moderately competitive and if a merger in this market raises the HHI by more than ______ , antitrust agencies worry about the potential loss of competition.
A)1,500 and 2,500; 50
B)2,500 and 5,500; 100
C)1,500 and 2,500; 100
D)2,500 and 5,500; 25

Question

Quizplus · Accepted Answer

The correct range for a market to be considered moderately competitive according to the Herfindahl-Hirschman Index (HHI) is between 1,500 and 2,500. If a merger raises the HHI by more than 100 in such a market, antitrust agencies may become concerned about the potential loss of competition.

If a Pre- Merger Herfindahl- Hirschman Index (HHI)is Between _____