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You are working for the Department of Justice, reviewing a proposed merger between two firms. You've calculated the Herfindahl Index for this industry and it

You are working for the Department of Justice, reviewing a proposed merger between two firms. You've calculated the Herfindahl Index for this industry and it is 1150 before the merger takes place. Which of the following is correct? Multiple Choice This merger will not be challenged The merger will definitely be challenged This merger may be challenged depending on how much the Herfindahl decreases if the merger were to be allowed The merger may be challenged depending on how much the Herfindahl increases if the merger were to be allowed

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