One Advantage of the Herfindahl Index Over the Concentration Ratio

question 93

Multiple Choice

One advantage of the Herfindahl index over the concentration ratio is that it:

• A) takes into account only the leading firms in an industry.
• B) gives extra weight to firms that are especially large.
• C) tells about only the top 50 firms in an industry.
• D) is easier to calculate.

---

Definitions:

Utility Patents

Utility patents are issued for the invention of a new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.

Process

A series of actions or steps taken to achieve a particular end; in legal terms, it often refers to the proceedings in courts or the issuance of court orders.

Mode of Treatment

The manner or method in which something, often a medical condition, is treated or handled.

Patent Infringement

The unauthorized use, sale, or manufacture of a patented invention within a country by someone other than the patent holder.