In a market with a Herfindahl-Hirschman Index of 2,000, according to their guidelines will the Department of Justice challenge a merger that would increase the index by 100?

What will be an ideal response?


Yes, according to their guidelines the Department of Justice will challenge a merger that increases the Herfindahl-Hirschman Index by more than 100 points if the initial index is greater than 1,500.

Economics

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