A measure of sales concentration that is used by the Department of Justice to determine industry concentration is the:
A) Herfindahl-Hirschman index.
B) market percentage.
C) percentage of squares method.
D) sum of squares method.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a commonly used measure of market concentration that is utilized by the Department of Justice, among other entities, to assess the level of competition within industries. It is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

A Measure of Sales Concentration That Is Used by the Department