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Suppose There Are Five Firms in the Disposable Diaper Market

Question 256

Multiple Choice

Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. Plumper's share is 30 percent. Drippy's share is 20 percent. Kool Kid's share is 10 percent. Nappomatic's share is 10 percent. The Herfindahl-Hirschman Index in this industry is


A) 100.
B) 900.
C) 1,350.
D) 2,400.

Correct Answer:

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