Even though the market for bricks has a low concentration ratio nationally, the U.S. Justice

Department might still scrutinize any mergers in this industry because

A. the HHI is high nationally.

B. the HHI is above 1800 nationally.

C. the market is regional not national, and the regional concentration might be high.

D. the HHI is below 1800 nationally.

C. the market is regional, not national, and the regional concentration might be high

If the market for the industry has a low concentration ratio nationally, then its HHI must be low. As per general rules, the HHI level smaller than 1500 is a low concentration. If the HHI level is greater than 1800 nationally, then it is not a low concentration, and the industry is to be scrutinized for mergers. However, the question clearly mentions of low concentration ratio. Hence, HHI should not be above 1800.

On the other hand, there is a chance that it is below 1800 nationally. But, the U.S. Justice

Department will check it for merger, generally, if HHI increases by more than 200. We do not have information about this. Hence, it can be said that, though nationally, the market for bricks shows a low concentration ratio, the regional concentration might be high. Cities, industrial regions may require more bricks, which shows the need for higher concentration regionally. Hence, this option seems correct.