The Herfindahl-Hirschman Index measures
A)concentration in the industry.
B)industrial average output.
C)economies of scale.
D)consumer confidence.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index is a measure of market concentration in an industry. It is calculated by summing the squares of the market shares of all firms in the industry. The higher the HHI score, the more concentrated the market, and the higher the likelihood of reduced competition and increased market power for the dominant firms.

The Herfindahl-Hirschman Index Measures