When judging the anticompetitive effects of a horizontal merger, the FTC and Justice Department are likely to look most closely at the:
A) combined concentration ratio of the merged firms.
B) size of the Herfindahl-Hirschman Index but not the change in the index.
C) change in the Herfindahl-Hirschman Index but not the size of the index.
D) size of the Herfindahl-Hirschman Index and the change in the index.

Question

Quizplus · Accepted Answer

The FTC and Justice Department consider both the size of the Herfindahl-Hirschman Index (HHI) and the change in the index when evaluating the anticompetitive effects of a horizontal merger. The HHI measures market concentration and its change indicates how the merger would affect competition in the market.

When Judging the Anticompetitive Effects of a Horizontal Merger, the FTC