Suppose That There Are Two Industries,A and B

question 94

Multiple Choice

Suppose that there are two industries,A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 million, $1 million, and $1 million, respectively. There are four firms in industry B with equal sales of $2.5 million for each firm. The HHI for industry B is:

• A) 2,500.
• B) 1,800.
• C) 3,200.
• D) 2,800.