Suppose there are 12 firms in an industry. The percentage of total sales is given in the following table:
|
Firm
|
Percentage of total sales
|
|
1
|
16
|
|
2
|
14
|
|
3
|
12
|
|
4
|
12
|
|
5
|
10
|
|
6
|
8
|
|
7
|
6
|
|
8
|
6
|
|
9
|
5
|
|
10
|
4
|
|
11
|
4
|
|
12
|
3
|
A) Calculate the HHI for this industry.
B) If firms 6 and 7 decide to merge, would this merger be challenged by the FTC? Why or why not?