Suppose the firms in a six-firm industry have market shares of 32, 20, 16, 16, 10, and 6 percent, respectively. The Herfindahl index for the industry is

Name: Suppose the firms in a six-firm industry have market shares of 32, 20, 16, 16, 10, and 6 percent, respectively. The Herfindahl index for the industry is
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The Herfindahl index is calculated by summing the squares of the market shares of all firms in the industry: 32^2 + 20^2 + 16^2 + 16^2 + 10^2 + 6^2 = 1,024 + 400 + 256 + 256 + 100 + 36 = 2,072.

Suppose the Firms in a Six-Firm Industry Have Market Shares