The Herfindahl-Hirschman Index (HHI)is the square of the percentage market share of each firm summed over the ________ firms in a market.
A)largest 60
B)largest 50
C)smallest 50
D)largest 75
E)smallest 60

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the percentage market shares of the largest 50 firms in a market, making option B the correct answer.

The Herfindahl-Hirschman Index (HHI)is the Square of the Percentage Market