Question

According to the FTC's historical guidelines for mergers, would the FTC approve a merger between two firms that would result in an HHI of 1,025 after the merger?
A.Yes, the FTC would ignore the merger and allow it to go through.
B. Maybe. The FTC would scrutinize the merger and make a case-by-case decision.
C. No, the FTC would probably challenge the merger.

Answer 1

Answer:

B. Maybe. The FTC would scrutinize the merger and make a case-by-case decision.

Explanation:

If we considered the historical guidelines of FTC for the merger purpose so may be FTC could permit the merger between the two firms that could result in HHI of 1,025 after the merger as the merger represent the moderal level of the concentration in the market area so here FTC should analyzes the merger with cash to cash basis

Therefore the option b is correct