The Herfindahl-Hirschman Index Tends to Be Lower When

question 128

Multiple Choice

The Herfindahl-Hirschman index tends to be lower when

• A)one firm has 81 percent market share and all others have 1 percent each.
• B)there are more firms in the industry.
• C)the shares of each firm are more unequal.
• D)the four largest firms control over 80 percent of the market share.
• E)one or two firms have a large market share.

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Definitions:

Pervasiveness

The state or quality of being widespread throughout an area or a group of people, often referring to technology or cultural phenomena.

Ubiquitousness

The state of being present, appearing, or found everywhere, especially of a concept or technological feature.

Snooping

involves unauthorized access to another person's or company's data or spying on data traffic in networks to capture sensitive information.

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access.