If an industry consists of five firms each with a 20 percent market share, then the Herfindahl-Hirschman index would equal 1,600.

Name: If an industry consists of five firms each with a 20 percent market share, then the Herfindahl-Hirschman index would equal 1,600.
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The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the industry. For five firms each with a 20% market share, HHI = 5 * (20^2) = 5 * 400 = 2000.

If an Industry Consists of Five Firms Each with a 20