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The Herfindahl-Hirschman Index (HHI) Is a Measure of Concentration Found

Question 88

Multiple Choice

The Herfindahl-Hirschman Index (HHI) is a measure of concentration found by:


A) squaring the percentage share of each firm in the industry.
B) squaring the percentage share of each firm in the industry and then summing the squared market shares.
C) summing the percentage shares of each firm in the industry.
D) squaring the sums of the concentrations ratios found in an industry survey of the largest 4 and largest 8 firms.

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