The Herfindahl-Hirschman Index Tends to Be Lower When

question 128

Multiple Choice

The Herfindahl-Hirschman index tends to be lower when

• A)one firm has 81 percent market share and all others have 1 percent each.
• B)there are more firms in the industry.
• C)the shares of each firm are more unequal.
• D)the four largest firms control over 80 percent of the market share.
• E)one or two firms have a large market share.

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Definitions:

Vertices

Plural of vertex; refers to the multiple points where two or more curves, lines, or edges meet, especially as the corner points of polygons or angles.

Hyperbola

A type of smooth curve lying in a plane, defined by its geometric properties or by equations for which it is the solution set.

Asymptotes

Lines that a graph approaches but never touches, indicating behaviour towards infinity in functions or sequences.

Hyperbola

A type of smooth curve lying in a plane, defined as the difference of distances from any point on the curve to two fixed points (foci) being a constant.