The Herfindahl-Hirschman Index

question 241

Multiple Choice

The Herfindahl-Hirschman Index

• A) is the equivalent of the eight-firm concentration ratio.
• B) is the sum of the squares of each market share of each company in the industry.
• C) cannot be used to measure market power for purposes of evaluating mergers.
• D) takes the top four firms in the industry and adds up their market power.

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