-A market that is shared equally by 100 firms would have a Herfindahl index of :
A)1.
B)1,000.
C)500.
D)100.
E)50.

Name: -A market that is shared equally by 100 firms would have a Herfindahl index of : A)1. B)1,000. C)500. D)100. E)50.
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Question

-A market that is shared equally by 100 firms would have a Herfindahl index of :
A)1. 
B)1,000. 
C)500. 
D)100. 
E)50.

Quizplus · Accepted Answer

The Herfindahl index is calculated by summing the squares of the market shares of all firms in the market. If 100 firms share the market equally, each firm has a 1% market share. The index is 100*(1^2) = 100.

-A Market That Is Shared Equally by 100 Firms Would