According to the Federal Trade Commission merger guidelines, a merger is likely to be challenged if
A)the HHI after the merger is the same as the HHI before the merger.
B)the HHI decreases after the merger.
C)the HHI after the merger is above 1,000 and has increased.
D)the HHI after the merger is above 1,800 and has increased by 50 points or more.
E)the HHI after the merger is above 1,500 and has decreased.

Question

Quizplus · Accepted Answer

According to the Federal Trade Commission merger guidelines, a merger is likely to be challenged if the post-merger HHI is above 1,800 and has increased by 50 points or more. This indicates a significant increase in market concentration and reduced competition, which can harm consumers.

According to the Federal Trade Commission Merger Guidelines, a Merger