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There Are Six Firms in the Cresset Industry

Question 131

Multiple Choice

There are six firms in the cresset industry.The market shares of the four largest firms are 50 percent, 20 percent, 10 percent, and 7 percent.The Herfindahl index is


A) 87
B) 4, 149
C) 10, 000
D) 3, 081
E) impossible to calculate because data for the fifth and sixth firms are not given

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