If There Are Four Firms in a Market and One

question 53

Multiple Choice

If there are four firms in a market and one has a 40 percent market share, one has a 25 percent market share, one has a 20 percent market share, and one has a 15 percent market share, the Herfindahl- Hirschman Index (HHI) in this market is_____ .

• A)2,850
• B)1,270
• C)5,250
• D)8,250

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Definitions:

Bad Weather

Bad weather pertains to unfavorable or harsh meteorological conditions, such as heavy rain, snow, storms, or extreme temperatures, that can affect activities and safety.

Substitution

The act of replacing one element with another in various contexts, such as materials in manufacturing, ingredients in cooking, or components in a legal document.

Valid Obligation

A legally binding duty or commitment that is enforceable under the law.

Previous

Referring to something occurring before the current point in time or the item immediately before another in order or sequence.