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Question
Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows:a. Firm A: 30%
b. Firm B: 20%
c. Firms C, D and E: 10% each
d. Firms F, G, H and J: 5% each
What is the value of the Herfindahl-Hirschman Index and how is the industry categorized?
A) 1700; moderately concentrated
B) 1425; moderately concentrated
C) 1600; moderately concentrated
D) 2600; highly concentrated
Answer
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