If the Herfindahl Index Is the Same in Two Industries

question 81

Multiple Choice

If the Herfindahl index is the same in two industries, we can conclude that

• A)the number of firms in each industry is the same
• B)there must not be the same number of firms in the two industries
• C)the sum of the squared market shares of all firms is the same in the two industries
• D)there must be an identical distribution of market share among firms in the two industries
• E)there must be a different distribution of market share among firms in the two industries

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Definitions:

Globalization

Globalization is the process of increased interconnectedness and interdependence among countries, particularly in terms of economic, cultural, and political exchanges, facilitated by advances in communication and transportation technologies.

Populations

Groups of individuals belonging to the same species that live in a shared region and interbreed.

Modernization

The transition from traditional to contemporary forms of society, often characterized by technological, social, and economic changes.

Subprocesses

The distinct and smaller sequences of activities or steps that form part of a larger process or operation.