The Sum of the Squared Market Shares of Each Firm

question 208

Multiple Choice

The sum of the squared market shares of each firm in an industry is the:

• A) concentration ratio.
• B) employment rate.
• C) Herfindahl-Hirschman Index.
• D) market number.

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Definitions:

Simplify

To simplify means to make something less complex or easier to understand, often by reducing it to its basic components.

Exponent Laws

Mathematical rules governing operations involving powers, such as multiplication and division of exponents.

Simplify

To make a complex problem or equation easier to understand or solve by reducing it to its basic components.

Evaluate

The process of determining the value of an algebraic expression by substituting the values of the variables and performing the operations indicated.