The Sum of the Squared Values of Market Shares of Firms

question 166

Multiple Choice

The sum of the squared values of market shares of firms in an industry is referred to as the

• A)concentration ratio.
• B)Herfindahl index.
• C)variance value.
• D)antitrust index.

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Definitions:

Consolidated Sales

The total sales revenue of a parent company and its subsidiaries, reported as one figure in the consolidated financial statements.

Normal Markup

The standard percentage added to the cost of goods to determine their selling price.

Consolidated Sales

The total sales of a parent company and its subsidiaries, after eliminating intercompany sales, reported in the consolidated financial statements.

Normal Markup

The standard amount or percentage added to the cost of a product to determine its selling price.