Consider a horizontal merger that results in a postmerger Herfindahl index of 1950. Before the merger, the index was 1800. Based on U.S. government guidelines, is this merger likely to be challenged?
Explanation
This question tests the application of the specific numerical guidelines for the Herfindahl index used by the government to evaluate horizontal mergers. A merger is likely to be challenged if it results in a highly concentrated market (index > 1800) and significantly increases that concentration (increase > 100 points).
Other questions
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