If there are four firms in an industry with market shares of 50 percent,40 percent,5 percent,and 5 percent,the Herfindahl-Hirschman Index is

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The Herfindahl-Hirschman Index (HHI) is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. For the given market shares, HHI = (50^2) + (40^2) + (5^2) + (5^2) = 2500 + 1600 + 25 + 25 = 4150.

If There Are Four Firms in an Industry with Market