Consider an industry consisting of four firms with market shares of 30 percent, 25 percent, 25 percent, and 20 percent. Calculate the Herfindahl Hirschman Index and interpret your result
HHI = (302 + 252 + 252 + 202) = 2,550.
The industry is considered to be highly concentrated as the HHI number exceeds 1,800.
You might also like to view...
Which of the following is NOT a regional trade agreement?
a. the Trans-Pacific Partnership b. the Trans-Atlantic Trade and Investment Partnership c. the North American Free Trade Area d. the Europe-Japan Free Trade Area
When the market value of the dollar falls relative to other currencies around the world, we say that
A) the supply of dollars has decreased. B) the dollar has depreciated. C) the demand for dollars has decreased. D) the dollar has appreciated.
Give some explanations for the decline in union membership in the United States
In general, ________ a higher rate of return for a given level of risk than ________ can offer.
A. any other type of saving has; a portfolio B. a portfolio has; individual assets C. individual assets have; a portfolio D. a portfolio has; any other type of saving