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 industry with the greatest market power as measured by the Herfindahl index is:
A) Alpha.
B) Beta.
C) Cappa.
D) Delta.

Question

Quizplus · Accepted Answer

The Herfindahl index is calculated by squaring the market share of each firm within an industry and then summing the resulting numbers. For Beta, the calculation is $80^2 + 10^2 + 5^2 + 3^2 + 1^2 + 1^2 = 6400 + 100 + 25 + 9 + 1 + 1 = 6536$, which is the highest among the given industries, indicating the greatest market power.

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 $\begin{array}{c}&&\text { Market Share of Firms in Industry }\end{array}$