Assume six firms composing an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl index for this industry is

Name: Assume six firms composing an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl index for this industry is
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The Herfindahl index is calculated by summing the squares of the market shares of all firms in the industry. Here, (30^2) + (30^2) + (10^2) + (10^2) + (10^2) + (10^2) = 900 + 900 + 100 + 100 + 100 + 100 = 2200.

Assume Six Firms Composing an Industry Have Market Shares of 30