21-117 The Herfindahl-Hirschman Index (HHI)is a measure of

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The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, specifically measuring the degree to which an industry is dominated by a few large firms. It is calculated by summing the squared market shares of all firms in the industry. A high HHI indicates high concentration and potentially less competition, while a low HHI suggests a more competitive market. Therefore, A is the best choice as it accurately describes what the HHI measures.

21-117 the Herfindahl-Hirschman Index (HHI)is a Measure of