Merger guidelines developed by the U.S. Department of Justice and the Federal Trade Commission use the Herfindahl-Hirschman Index as a measure of concentration. This index measures concentration in an industry by
A) adding up the market shares of all firms in the industry, squaring this number and then dividing by the number of firms in the industry.
B) squaring the market shares of each firm in an industry and then adding up the values of the squares.
C) determining the market shares of the four largest firms in the industry, but unlike the concentration ratio, the Index includes sales in the United States by foreign firms.
D) squaring the four-firm concentration ratio of the industry and dividing this number by the total number of firms in the industry.
B
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Why are income taxes on capital income more powerful than those on labor income?
What will be an ideal response?
Why are firms in oligopoly interdependent?
What will be an ideal response?
The economic system in which the basic economic questions are answered through markets with some government intervention is a:
A. command economy. B. mixed economy. C. market economy. D. planned economy.
The more society consumes today
A. the less society can consume in the future. B. the more it consumes next year. C. the more capital goods society can produce in the future. D. the less it can produce today.