If There Are Four Firms in an Industry with Market

question 65

Multiple Choice

If there are four firms in an industry with market shares of 50 percent,40 percent,5 percent,and 5 percent,the Herfindahl-Hirschman Index is

• A) 100.
• B) 4150.
• C) 25.
• D) 3450.
• E) undefined because there are not 50 firms in the industry.