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

question 152

Multiple Choice

What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares of 5%, 10%, 15%, 20%, 25%, and 25%?

• A)100 
• B)1,350 
• C)1,375 
• D)2,000

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Definitions:

Interval of Random Numbers

The range between the smallest and largest numbers in a set that has been chosen randomly.

Random Numbers

Sequences of numbers generated in such a way that each number has an equal chance of being any value within the defined range, used in simulations and probabilistic calculations.

Expected Demand

An estimate of the quantity of a product or service that consumers will purchase in the future, often used for planning and inventory management.

Demand Probability

The likelihood that a specific level of demand will occur within a certain period.