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The Herfindahl-Hirschman Index (HHI) is a mathematical approach to understanding market concentration that provides a single concentration indicator. What is the HHI for an industry characterized by the
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The Herfindahl-Hirschman Index (HHI) is a mathematical approach to understanding market concentration that provides a single concentration indicator. What is the HHI for an industry characterized by the below noted data?Firm 1 has a market share of 40%Firm 2 has a market share of 20%Firm 3 has a market share of 15%Firm 4 has a market share of 15%Firm 5 has a market share of 10%HHI=___

User Joe Consterdine
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Answer:

2550

Step-by-step explanation:

The HHI is calculated by squaring the market share of each firm in the industry.

40² + 20² + 15² + 15² + 10² = 1600 + 400 + 225 + 225 + 100 = 2550

User Sonnyb
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