What Is the Herfindahl Index of an Industry Made Up

question 99

Multiple Choice

What is the Herfindahl index of an industry made up of ten equal-sized firms?

• A)1,800
• B)10,000
• C)100
• D)1,000

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Definitions:

Competitively

Refers to a market condition where businesses or individuals vie against each other to gain economic advantage or win consumers' favor.

Profit-Maximizes

Refers to the strategy or objective of an entity or individual aimed at achieving the highest possible profit from its operations, typically by managing costs, pricing, and output.

Profit-Maximizes

Strategies or actions by firms aimed at increasing their profits to the highest possible level.

Total Cost

The market value of the inputs a firm uses in production.