The Herfindahl-Hirschman Index Is Measured by

question 102

Multiple Choice

The Herfindahl-Hirschman index is measured by

• A) adding the market shares of all firms in an industry.
• B) adding the squares of the market shares of all firms in an industry.
• C) squaring the sum of the market shares of the all firms in an industry.
• D) adding the market shares of the four largest firms in an industry.

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Definitions:

Satisfaction

The fulfillment or gratification of a desire, need, or appetite.

Green Beans

Edible green pods from certain cultivars of the common bean, often consumed cooked as a vegetable.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the additional satisfaction obtained from consuming one more unit.

Utility

A measure of satisfaction or pleasure that a consumer receives from consuming goods and services.