In the 1980s, the FTC followed guidelines stipulating that, should a proposed merger result in an HHI of less than 1,000,
A) the FTC would probably challenge it.
B) the FTC would scrutinize the proposal.
C) the FTC would probably approve it.
D) the FTC make a case-by-case decision.

Question

Quizplus · Accepted Answer

If a proposed merger resulted in an HHI (Herfindahl-Hirschman Index) of less than 1,000, the FTC (Federal Trade Commission) would probably approve it, as this indicates a competitive market with low concentration.

In the 1980s, the FTC Followed Guidelines Stipulating That, Should