If the Herfindahl-Hirschman Index for an industry is 100,then there must be ____ firms in that industry.

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Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squared market shares of all firms in the industry. An HHI of 100 means that there are 100 firms in the industry, each with a market share of 1%. This is because 1% squared is 0.0001 and 0.0001 multiplied by 100 firms gives an HHI of 100.

If the Herfindahl-Hirschman Index for an Industry Is 100,then There