-According to the Herfindahl-Hirschman Index,which Is the More Concentrated Industry

question 20

Multiple Choice

$~~~~~{ \text { Industry } \mathbf { X } } ~~~~~~~~~~~~~ { \text { Industry } \mathbf { Y } } \\\begin{array} { c c c c } & \text { Market }& & { \text { Market } } \\\text { Firm } &\text { Share } & \text { Firm } & \text { Share } \\1 & .40 & 1 & .30 \\2 & .20 & 2 & .30 \\3 & .10 & 3 & .30 \\4 & .10 & 4 & .05 \\5 & .10 & 5 & .03 \\6 & .10 & 6 & .02\end{array}$
-According to the Herfindahl-Hirschman Index,which is the more concentrated industry?

• A)Industry X with an index of 2,400.
• B)Industry Y with an index of 2,738.
• C)Both industries have the same indices.
• D)There is no way to determine the Herfindahl Indices of these industries with this data.

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Definitions:

John Locke

A 17th-century English philosopher known for his work on political philosophy, particularly regarding the social contract and natural rights.

All Men Are Created Equal

A principle asserting the inherent equality and entitlement of all individuals to rights and liberties, famously articulated in the U.S. Declaration of Independence.

Common Sense

The basic level of practical knowledge and judgment that we all need to help us live in a reasonable and safe way.

Thomas Paine

An influential political activist and writer whose works, including "Common Sense," contributed to the American Revolution.