According to the Department of Justice's Horizontal Merger Guidelines,a post-merger HHI _______ is considered _____________________.
A) below 1,000; low resulting in a high likelihood that a merger will be permitted
B) above 1,800; low resulting in a high likelihood that a merger will be permitted
C) below 1,000; high resulting in high likelihood that a merger will be blocked
D) below 1,800; high resulting in high likelihood that a merger will be blocked

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, and a post-merger HHI below 1,000 is considered low, indicating a competitive market. This typically results in a high likelihood that a merger will be permitted by regulatory authorities, as it suggests the merger will not significantly reduce competition.

According to the Department of Justice's Horizontal Merger Guidelines,a Post-Merger