There Are Twenty Five Dealers in the Local Market for New

question 213

Multiple Choice

There are twenty five dealers in the local market for new cars. The largest dealership has a market share of 12 percent; the second and third largest have 10 percent and 9 percent, respectively; the fourth and fifth largest have 5 percent and 4 percent, respectively; and the remaining twenty dealerships each have a 2 percent market share. What is value of the Herfindahl-Hirschman index (HHI) for this market?

• A) 42
• B) 82
• C) 266
• D) 446

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Definitions:

Subcultures

Subgroups within the larger, or national, culture with unique values, ideas, and attitudes.

National Culture

The set of shared values, beliefs, practices, and norms that characterizes the population of a nation.

Unique Values

Distinctive qualities or principles held by an individual, organization, or product that set them apart from others.

African American

An ethnic group in the United States with total or partial ancestry from any of the black racial groups of Africa.