If there are only three firms in an industry with 50 percent, 40 percent, and 10 percent of the market share, respectively, the Herfindahl Index is _____.

Name: If there are only three firms in an industry with 50 percent, 40 percent, and 10 percent of the market share, respectively, the Herfindahl Index is _____.
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Question

If there are only three firms in an industry with 50 percent, 40 percent, and 10 percent of the market share, respectively, the Herfindahl Index is _____.​

Quizplus · Accepted Answer

The Herfindahl Index is calculated by squaring the market share of each firm and then summing the results: (50^2) + (40^2) + (10^2) = 2500 + 1600 + 100 = 4200.

If There Are Only Three Firms in an Industry with 50