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What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares...

What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares of 40%, 30%, 20%, 5%, 3%, and 2%?

a.

0.95
b.

10,000
c.

2,938
d.

2.934
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Answer #1

Herfindahl-Hirschman Index = {S? Sia represent market share of firm. = 40² + 30² + 20² + ²+ 3² +2² = 1 bootgoo +4oo tastatu H

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