-Based on the above table, which shows the firms and sales in an industry, what is the approximate value of the Herfindahl-Hirschman Index?
A) 1,660
B) 2,300
C) 4,800
D) 10,000

Question

-Based on the above table, which shows the firms and sales in an industry, what is the approximate value of the Herfindahl-Hirschman Index?
A) 1,660 
B) 2,300 
C) 4,800 
D) 10,000

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the industry. Without the specific market shares, we can't calculate the exact HHI, but option A (1,660) is a typical value for a moderately concentrated market.

-Based on the Above Table, Which Shows the Firms and Sales