There Are 6 Firms in a Market and the Market

question 204

Multiple Choice

There are 6 firms in a market and the market shares of the firms are 40 percent, 30 percent, 10 percent, 8 percent, 7 percent, and 5 percent. The Herfindahl-Hirschman index is

• A) 2738.
• B) 2664.
• C) 100.
• D) 88.

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Definitions:

Factory

A factory is an industrial site where workers manufacture goods or operate machines processing one product into another, typically involving large-scale production methods and specialized equipment.

Australian Accounting Standards

A set of principles and rules that guide financial reporting and accounting practices in Australia.

Departmental Production Report

A document that tracks the output, efficiency, and costs of a specific department within a manufacturing facility.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.