In an Industry There Are Only 20 Firms and Each

question 71

Multiple Choice

In an industry there are only 20 firms and each of them has equal share. Compute Herfindahl Hirschman Index and state the level of concentration in the industry.

• A) HHI = 500; High Concentration
• B) HHI = 8000; low Concentration
• C) HHI = 8000; High Concentration
• D) HHI = 500; Low Concentration

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Definitions:

Index

An index refers to an integer value that indicates a position within an array or list, used to access specific elements.

Array's Starting Position

Refers to the initial index or location of the first element in an array, typically zero in most programming languages.

Atomic Data Types

Fundamental types of data that are not divisible into simpler types within the programming language.

Structured Types

Structured types are composite data types in programming that allow for the combination of multiple items of possibly different types into a single type.