$~~~~~{ \text { Industry } \mathbf { X } } ~~~~~~~~~~~~~ { \text { Industry } \mathbf { Y } } \
\begin{array} { c c c c }
& \text { Market }& & { \text { Market } } \
\text { Firm } &\text { Share } & \text { Firm } & \text { Share } \
1 & .40 & 1 & .30 \
2 & .20 & 2 & .30 \
3 & .10 & 3 & .30 \
4 & .10 & 4 & .05 \
5 & .10 & 5 & .03 \
6 & .10 & 6 & .02
\end{array}$
-Which statement is true?

Question

$~~~~~{ \text { Industry } \mathbf { X } } ~~~~~~~~~~~~~ { \text { Industry } \mathbf { Y } } \
\begin{array} { c c c c } 
& \text { Market }& & { \text { Market } } \
\text { Firm } &\text { Share } & \text { Firm } & \text { Share } \
1 & .40 & 1 & .30 \
2 & .20 & 2 & .30 \
3 & .10 & 3 & .30 \
4 & .10 & 4 & .05 \
5 & .10 & 5 & .03 \
6 & .10 & 6 & .02
\end{array}$
-Which statement is true?

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the industry. For Industry Y: $0.30^2 + 0.30^2 + 0.30^2 + 0.05^2 + 0.03^2 + 0.02^2 = 0.09 + 0.09 + 0.09 + 0.0025 + 0.0009 + 0.0004 = 0.2738$. When multiplied by 10,000, the HHI is 2,738.

-Which Statement Is True? A)Industry Y Has a Herfindahl-Hirschman Index

-Which Statement Is True?
A)Industry Y Has a Herfindahl-Hirschman Index