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Alex17521 [72]
3 years ago
7

The Herfindahl-Hirschman Index (HHI) is a mathematical approach to understanding market concentration that provides a single con

centration 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=___
Business
1 answer:
torisob [31]3 years ago
4 0

Answer:

2550

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

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