Industry a Has Two Firms That Each Control 50 Percent

question 15

Multiple Choice

Industry A has two firms that each control 50 percent of the market. Industry B has three firms, where one firm controls 70 percent of the market and the other two firms control 15 percent of the market each. According to the HHI, which industry is more concentrated?

• A) Industry A
• B) Industry B
• C) Both industries are equally concentrated.
• D) indeterminate from the given information.

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Definitions:

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.