There is a potential merger in the U.S. snack cake industry. The current HHI is 1,700 and the new HHI would be 2,700. The U.S. Department of Justice would classify this as an un-concentrated market, which would increase the likelihood of this merger being approved.

Question

Quizplus · Accepted Answer

The U.S. Department of Justice considers markets with an HHI below 1,500 as unconcentrated, between 1,500 and 2,500 as moderately concentrated, and above 2,500 as highly concentrated. An increase from 1,700 to 2,700 would move the market from moderately concentrated to highly concentrated, potentially raising antitrust concerns.

There Is a Potential Merger in the U