What Would the Herfindahl-Hirschman Index Equal for an Industry Consisting

question 101

Multiple Choice

What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares of 40%, 30%, 20%, 5%, 3%, and 2%?

• A)0.95 
• B)2.934 
• C)2,938 
• D)10,000

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Definitions:

Divest

To sell off assets, investments, or divisions of a company, often for financial, ethical, or strategic objectives.

Newly Merged Firm

A company that has recently completed a merger, combining assets, liabilities, and operations with another firm.

Raise Cash

The process by which a company or individual generates liquidity, often through the sale of assets or equity.