-The most reliable measure of market concentration is:
A)the Cost of Living index.
B)the Herfindahl-Hirschman index.
C)the Market index.
D)the Market-Value weighted index.
E)the Wholesale Price index.

Question

-The most reliable measure of market concentration is:
A)the Cost of Living index. 
B)the Herfindahl-Hirschman index. 
C)the Market index. 
D)the Market-Value weighted index. 
E)the Wholesale Price index.

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a commonly used measure of market concentration. It is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. It can range from close to zero to 10,000, indicating a market ranging from highly competitive to a monopoly.

-The Most Reliable Measure of Market Concentration Is