If the Herfindahl Index Is the Same in Two Industries

question 6

Multiple Choice

If the Herfindahl index is the same in two industries, we can conclude that:​

• A)the number of firms in each industry is the same.
• B)the number of firms in the two industries is not the same.
• C)the sum of the squared market shares of all firms is the same in the two industries.
• D)there must be an identical distribution of market shares among the firms in the two industries.
• E)there are only two firms in each industry.

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Definitions:

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The process of assessing the financial and operational aspects of deciding whether to lease or purchase equipment or property.