If a market is shared equally by 100 firms, the Herfindahl-Hirschman Index is
A) 1/100.
B) 1/50.
C) 50.
D) 100.

Name: If a market is shared equally by 100 firms, the Herfindahl-Hirschman Index is A) 1/100. B) 1/50. C) 50. D) 100.
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Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the market. If 100 firms share the market equally, each firm has a 1% market share. The HHI is 100*(1^2) = 100.

If a Market Is Shared Equally by 100 Firms, the Herfindahl-Hirschman