Industry a Has Market Shares of 50,30,and 20 (Si2),where Si Is the Market Shares of the I-Th Firm
Industry A has market shares of 50,30,and 20.Industry B has market shares of 45,40,and 15.Hint: HHI = (si2) ,where si is the market shares of the i-th firm in the industry.
A) The Herfindahl index for A is 100.
B) The Herfindahl index for A is 3,800.
C) The Herfindahl index for B is 3,600
D) The Herfindahl index for A is greater than for B.
E) The Herfindahl index is for B is 4,000.
Correct Answer:
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