-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:

Prices

The amount of money required to purchase goods or services, typically set by supply and demand dynamics in the market.

Scarce Resources

Refers to the limited availability of resources that are used for the production of goods and services.

Classified Ads

Short advertisements placed in a bulletin, newspaper, or online platform, categorized by the type of product, service, or job offered.

Market

A market is a place or mechanism where buyers and sellers interact to trade goods, services, or financial instruments.