If the Herfindahl-Hirschman Index (HHI) Among the Firms in the Long

Multiple Choice

If the Herfindahl-Hirschman Index (HHI) among the firms in the long distance telecommunications market is equal to 855, when would the Federal Trade Commission probably challenge a proposed merger between any two of the firms?

A) It would challenge if the HHI would increase by more than 50 points.
B) It would challenge if the HHI would increase by more than 100 points.
C) It would challenge no matter what happened to the HHI because the market has so few firms.
D) It would not challenge because the HHI is less than 1500.