If There Were Five Firms in an Industry Each with a 20

question 48

Multiple Choice

If there were five firms in an industry each with a 20% market share,what would the Herfindahl-Hirschman Index equal?

• A) 80%
• B) 800
• C) 1,600
• D) 2,000

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Definitions:

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Residue

The remainder or part left after the main part has been removed, used or processed, often in a chemical context.

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A government agency responsible for presenting the case in court against an individual accused of committing a crime.