Question

st Quiz-chp. 18 Economics2_#21906,Spring2019 RU Quiz: Post Quiz - chp. 18 Time Remaining: 00:49. This Question: 1 pt This Quiz 1 of 20 (0 complete) Suppose that an industry has an HHǐ of 1.900 Two firms in the industry want to merge Under which conditions will the Federal Trade Commission challenge the merger? O A. The merger will be challenged if it raises the HHl by 100 or more points O B. The market is considered competitive, so the merger will not be challenged ° C. The merger wil be challenged if it raises the HHI by 500 or more points O D. The merger will be challenged if t raises the HHl by 50 or more points O E. The merger will be challenged if it raises the HHI by 200 or more points Click to select your answer

Answer 1

The U.S. Department of justice considers a market with an HHI of 1900 to be a moderately concentrated marketplace. A merger that increases HHI by 100 points or more will be investigated. Therefore, the merger will be challenged if it raises the HHI by 100 or more points. the answer is option a.