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Froogal Inc. operates in an industry where the current Herfindahl-Hirschman Index (HHI) is at 1,500. The company is considering merging with a competitor that would increase the HHI by 75. Is the merger likely to attract anti-trust action? A. No, because the industry pre-merger is considered moderately concentrated and the change in the HHI is less than 100. B. Not enough information about the number of competitors. C. Yes, because the industry pre-merger is considered highly concentrated and the change in HHI is greater than 50. |