Answer:
the HHI index is $4,360
Explanation:
The computation of the HHI index is shown below:
= 10,000 × ($250,000 ÷ $1,390,000) ^2 + ($825,000 ÷ $1,390,000)^2 + ($315,000 ÷ $1,390,000)^2
= 10,000 × (0.032 + 0.352 + 0.051)
= $4,360
hence, the HHI index is $4,360
The $1,390,000 is the total of all three firms
And, the HHI index value is lied between from 0 to 10,000
