If You Sum the Squares of the Market Shares of Each

question 133

Multiple Choice

If you sum the squares of the market shares of each firm in an industry (as measured by percent of industry sales) , you are calculating the

• A) four-firm concentration ratio.
• B) Herfindahl index.
• C) degree of collusion.
• D) Lerner index.

---

Definitions:

Anxiety

An emotion of concern, anxiety, or discomfort due to an uncertain result.

Hallucinations

Experiencing sights and sounds without external sources, like noticing things which do not actually exist.

Voices

Auditory experiences where a person hears sounds or speech without external stimulus, commonly associated with certain mental health conditions.

Stress

A physical or emotional reaction to demanding or threatening situations, causing strain or tension.