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If the Herfindahl-Hirschman Index (HHI) for a market is between 1,000 and 1,800, the Federal Trade Commission will examine mergers that raise the HHI by
"If the Herfindahl-Hirschman Index (HHI) for a market is between 1,000 and 1,800, the Federal Trade Commission will examine mergers that raise the HHI by 100 or more points".Given this, if the two smallest firms want to merge, how will the Federal Trade Commission reply? Will it allow the firms to go ahead? How about if Firm 2 and 3 wanted to merge? Explain your reasoning.
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