Multiple Choice
Refer to the data. Suppose that firms in this industry split up such that there were 100 firms, each with a 1 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be
A) 100 percent and 10,000.
B) 4 percent and 4.
C) 100 percent and 16.
D) 4 percent and 100.
Correct Answer:
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