If there are four firms in an industry with market shares of 50 per cent, 40 per cent, 5 per cent, and 5 per cent, the Herfindahl-Hirschman Index is

Name: If there are four firms in an industry with market shares of 50 per cent, 40 per cent, 5 per cent, and 5 per cent, the Herfindahl-Hirschman Index is
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HHI = (0.5)^2 + (0.4)^2 + (0.05)^2 + (0.05)^2 = 0.25 + 0.16 + 0.0025 + 0.0025 = 0.415
HHI = 4150 (multiplied by 10,000 for convenience)

If There Are Four Firms in an Industry with Market