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.

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Definitions:

Chicken Tactic

A negotiation strategy where one party adopts a dangerous or risky position in the hope that the opposing party will yield or concede first.

Bluff

A strategy in negotiations or games where one pretends to have a stronger position or intent than is actually true.

Deadline

A fixed or set time by which something must be completed or submitted.

Disruptive Action Tactics

Strategies intended to disrupt or destabilize the status quo in negotiations or competitions, to gain advantage.