An industry made up of three firms with market shares of 50%, 40%, and 10% has a Herfindahl-Hirschman Index of

Name: An industry made up of three firms with market shares of 50%, 40%, and 10% has 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, HHI = (50^2) + (40^2) + (10^2) = 2500 + 1600 + 100 = 4200.

An Industry Made Up of Three Firms with Market Shares