Industry Y is dominated by five large firms that hold market shares of 20, 20, 25, 25, and 10. The Herfindahl index for this industry is

Name: Industry Y is dominated by five large firms that hold market shares of 20, 20, 25, 25, and 10. 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. For Industry Y: (20^2) + (20^2) + (25^2) + (25^2) + (10^2) = 400 + 400 + 625 + 625 + 100 = 2,150.

Industry Y Is Dominated by Five Large Firms That Hold