The Justice Department and Federal Trade Commission Use the Herfindahl-Hirschman

Multiple Choice

The Justice Department and Federal Trade Commission use the Herfindahl-Hirschman index because it indicates how likely it is that, after a merger, firms in an industry will

A) have enough market power to raise prices well above marginal cost.
B) have enough market power to use predatory pricing.
C) consider setting prices jointly.
D) increase output.
E) increase economic efficiency.