Which of the Following Statements About the Herfindahl-Hirschman Index (HHI)

Multiple Choice

Which of the following statements about the Herfindahl-Hirschman Index (HHI) is true?

A) The smaller the HHI,the more likely the government will be concerned about the merger.
B) The larger the increase in the HHI,the less concentrated the market.
C) The greater the increase in the HHI,the less likely the government will be concerned about the merger.
D) The larger the HHI,the more concentrated the market.