The Herfindahl-Hirschman Index Is a Measure of Concentration Found By

question 55

Multiple Choice

The Herfindahl-Hirschman index is a measure of concentration found by:

• A)squaring the percentage market share of each firm in the industry.
• B)squaring the percentage market share of each firm in the industry and then summing the squared market shares.
• C)summing the percentage market shares of each firm in the industry.
• D)squaring the sums of the concentration ratios found in an industry survey of the largest four and largest eight firms.

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