Final answer:
The Obama Justice Department would likely view an industry with an HHI under 2,500 favorably and potentially approve it, indicating a low concentration level and more competition. Antitrust enforcement authorities now also consider case-by-case analysis in addition to the HHI.
Step-by-step explanation:
The FTC guidelines in the 1980s stated that if an industry has an HHI (Herfindahl-Hirschman Index) of less than 1,000, it would probably be approved. If the HHI is above 1,800, it would likely be challenged. However, if the HHI falls between 1,000 and 1,800, it would be subject to further scrutiny and a case-by-case decision.
Based on this information, if the Obama Justice Department considers an industry with an HHI under 2,500, it would likely view it favorably and potentially approve it. An HHI under 2,500 indicates a relatively low concentration level and more competition in the industry.
It's important to note, though, that antitrust enforcement authorities have moved away from relying heavily on HHIs alone and now conduct more case-by-case analysis regarding competition in different industries.