A four-firm industry with market shares equal to 40, 30, 20, and 10 would have a Herfindahl-Hirschman Index of

Name: A four-firm industry with market shares equal to 40, 30, 20, and 10 would have a Herfindahl-Hirschman Index of
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The Herfindahl-Hirschman Index (HHI) is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. For this industry, the calculation would be $40^2 + 30^2 + 20^2 + 10^2 = 1600 + 900 + 400 + 100 = 3000$.

A Four-Firm Industry with Market Shares Equal to 40, 30