Assume the top six firms comprising an industry have market shares of 10, 8, 8, 5, 5, and 4 percent. The remaining 30 firms each have market shares of 2 percent. The Herfindahl index for this industry is

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The Herfindahl index is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. For the top six firms with market shares of 10, 8, 8, 5, 5, and 4 percent, and the remaining 30 firms each with a market share of 2 percent, the calculation is as follows:- For the top six firms: $10^2 + 8^2 + 8^2 + 5^2 + 5^2 + 4^2 = 100 + 64 + 64 + 25 + 25 + 16 = 294$- For the remaining 30 firms each with 2 percent market share: $30 \times 2^2 = 30 \times 4 = 120$Adding these together: $294 + 120 = 414$Therefore, the Herfindahl index for this industry is 414.

Assume the Top Six Firms Comprising an Industry Have Market