Five firms exist in the Liagiba industry. Their respective market shares are 35, 25, 15, 15, and 10 percent. Five firms exist in

Question

3 years ago

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the Haras industry. Their respective market shares are 35, 30, 25, 8, and 2 percent.
Required:
What is the Herfindahl index for the both industries?

1 answer:

Lady bird [3.3K] · Answer 1 · 2022-08-10T00:53:57+03:00

Answer:

Liagiba industry = 2400

Haras industry = 2818

Explanation:

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

Liagiba industry = 35² + 25² + 15² + 15² + 10² = 1225 + 625 +225 + 225 + 100 = 2400

Haras industry = 35² + 30² +25² + 8² + 2² = 1225 + 900 + 625 + 64 + 4 = 2818