Question

Manufacturing firms based in Columbus, Ohio, and Erie, Pennsylvania, have proposed a merger. If they were to merge, the resulting value of the Herfindahl-Hirschman Index in the nationwide market for the product they produce would rise from 1,400 to 1,800. Under current U.S. antitrust guidelines, would this proposed merger raise concerns for the U.S. Justice Department or Federal Trade Commission?

Short answer

No this proposed merger raise concerns for the U.S. Justice Department or Federal Trade Commission

Step-by-step solution

Given Information

US Antitrust Laws are also known as contest regulations, the US hostile to believe regulations shield the purchasers from out of line strategic approaches and guarantee fair rivalry in the open-market economy.

Explanation

According to the US against trust rules, there is no reason to worry till the HHI doesn't surpass $5000$. For this situation, post-consolidation the HHI ascends from $1400$to$1800$. Subsequently, there is no reason for worry for the FTC.