Suppose There Are Five Firms in the Disposable Diaper Market

question 258

Multiple Choice

Suppose there are five firms in the disposable diaper market. Hug-Me's share is 30 percent. Plumper's share is 30 percent. Drippy's share is 20 percent. Kool Kid's share is 10 percent. Nappomatic's share is 10 percent. The Herfindahl-Hirschman Index in this industry is

• A) 100.
• B) 900.
• C) 1,350.
• D) 2,400.

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Definitions:

Firm's Profits

The net income that remains after a company subtracts its expenses from its revenues, indicating its financial success.

Postpurchase Stage

The phase in the consumer buying process that occurs after a purchase is made, involving activities such as product use, evaluation, and forming future purchase intentions.

Repeat-Purchase Behavior

The act of customers repeatedly buying the same brand or product, often influenced by satisfaction, loyalty, or habit.

Consumer Communications

The process and methods used by companies and organizations to convey information to and engage with current and potential consumers.