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djverab [1.8K]
2 years ago
7

The following firms in the widget industry have the following market shares:

Business
1 answer:
CaHeK987 [17]2 years ago
8 0

Answer: 1,448

Explanation:

The Herfindahl Hirschman Index (HHI) is used to show how concentrated an industry is. A lower score indicates that the industry is not very concentrated because there are multiple firms involved.

A higher score shows that the industry is concentrated and controlled by a few firms.

HHI = ∑ square of every firm market share

= 12² + 13² + 14² + 15² + 16² + 17² + 13²

= 1,448

This industry is relatively competitive.

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