The Herfindahl Index Is Calculated By

question 36

Multiple Choice

The Herfindahl index is calculated by:

• A) adding the squared value of the market shares of all the firms in the industry.
• B) multiplying the squared value of the market shares of all the firms in the industry.
• C) adding the percentage of industry output produced by the largest four firms.
• D) adding the percentage of industry output produced by the largest eight firms.

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Definitions:

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