Which of the following indexes is used in Federal merger guidelines?
A) consumer price index
B) unemployment benefits index
C) employment cost index
D) Herfindahl index

Question

Quizplus · Accepted Answer

The Herfindahl index is used in Federal merger guidelines to determine market concentration and the potential impact of a merger on competition. It takes into account the market share of each firm and sums the squares of their market shares. A higher Herfindahl index indicates greater concentration and potential for anti-competitive behavior, while a lower index indicates a more competitive market.

Which of the Following Indexes Is Used in Federal Merger