in-a-market-with-an-hhi-of-1200-a-merger-is-proposed-that-would-increase-the-hhi

Question

In a market with an HHI of 1200, a merger is proposed that would increase the HHI by 400 points. What is the likely regulatory response?

Accepted Answer

The merger may face scrutiny due to the significant increase in concentration.

Answer

The merger will be automatically blocked.

Answer

The merger will be approved without any review.

Answer

The merger will be approved only if the HHI increase is less than 100 points.