Suppose There Are Three Firms in a Market

question 11

Multiple Choice

Suppose there are three firms in a market.The largest firm has sales of $50 million,and each of the other two firms has sales of $25 million.The Herfindahl-Hirschman Index of this industry is

• A)2,500.
• B)3,750.
• C)2,550.

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Definitions:

Simple Technology

Technology that is straightforward, easy to use, and not complicated by advanced features, often implying a lower level of sophistication.

Costs

Expenses incurred in the production of goods or services, including but not limited to materials, labor, and overhead.

Revenues

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Difference Approach

A method used in various fields to understand or analyze differences between entities or phenomena, often to derive specific conclusions or solutions.