Answer the question on the basis of the following table showing market shares of firms in hypothetical industries.Assume these are distinct industries with no buyer-seller relationships or competition among them. $\begin{array}{c}
&&\text { Market Share of Firms in Industry }
\end{array}$
$\begin{array}{c}
\begin{array}{lll}
\
Industry\
Alpha\
Beta\
Cappa\
Delta\
\end{array}
\begin{array}{lll}
\
1&2&3&4&5&6\
30&30&20&20&--&--\
80&10&5&3&1&1\
25&25&25&25&--&--\
20&20&20&20&10&10
\end{array}
\end{array}$ Refer to the table.The Herfindahl index for Cappa is:
A) 2,500.
B) 100.
C) 100,000.
D) 5,000.

Question

Quizplus · Accepted Answer

The Herfindahl index is calculated by squaring the market share of each firm within an industry and then summing the results. For Cappa, the calculation is $25^2 + 25^2 + 25^2 + 25^2 = 625 + 625 + 625 + 625 = 2,500$.

Answer the Question on the Basis of the Following Table Market Share of Firms in Industry \begin{array}{c}&&\text { Market Share of Firms in Industry }\end{array}​​ Market Share of Firms in Industry ​

Answer the Question on the Basis of the Following Table $\begin{array}{c}&&\text { Market Share of Firms in Industry }\end{array}$