Question

Time Remaining:00:38:38 Test: Third test-micro This Test: 48 pls possible 39 of 48 (36 complete) This Question: 1 pt Suppose that a company based in Dallas, Texas, confronts only four other rival firms its own market share is 28 percent, which ties it with the other largest producer and seller in the industry. The other three firms each have a 14.67 percent market share. What is the value of the Herfindahl-Hirschman index? The value of the Herfindahl-Hirschman index is CA. 1,568,0 OB. 3,9411 OC. 22136 OD. 1998.4. Click to select your answer II 9:40 PM 7/30/2020 o

please answer asap

Answer 1

HHI = 14.67^2 + 14.67^2 + 14.67^2 + 28^2+28^2

= 215.2+215.2+215.2+784+ 784

= 2213.6.

Here, the market is moderately concentrated.

HHI index is calculated by summing the squares of market share of each company. The index ranges from 0 to 10,000