If there are two equal-sized firms in an industry,the Herfindahl-Hirschman index would be:

Name: If there are two equal-sized firms in an industry,the Herfindahl-Hirschman index would be:
Brand: Quizplus
Rating: 4.9 (56 reviews)

Question

Quizplus · Accepted Answer

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 two equal-sized firms, each would have a 50% market share. Squaring 50 gives 2,500 for each firm, and summing these for both firms gives an HHI of 5,000.

If There Are Two Equal-Sized Firms in an Industry,the Herfindahl-Hirschman