To Calculate the Herfindahl-Hirschman Index (HHI),one Must _____ Market Share(s)of

question 178

Multiple Choice

To calculate the Herfindahl-Hirschman index (HHI) ,one must _____ market share(s) of _____ in the industry.

• A)sum the;the four largest firms
• B)sum the;all of the firms
• C)divide the;the largest firm by the sum of the four largest firms
• D)sum the squared;all of the firms

---

Definitions:

Promissory Note

A written promise to pay a specified sum of money to another party under agreed terms at a specified time.

Bill of Exchange

A written, unconditional order by one party, directing another party to pay a specific sum of money to a third party on demand or at a set time.

Vertical Merger

The combination of two or more companies that operate at different levels within the same industry's supply chain.

Horizontal Merger

A merger between companies operating at the same level in an industry or supply chain, often aimed at reducing competition or achieving economies of scale.