Find the
Herfindahl index for the industry composed of a) three firms-one with the 70
percent of the...

Question

Find the
Herfindahl index for the industry composed of a) three firms-one with the 70
percent of the market, and the other two with 20 and 10 percent of the market,
respectively; b)one firm with a 50 percent share of the market and 10 other
equalized firms; c) 10 equal-sized firms

Robert · Accepted Answer

Find the Herfindahl index for the industry composed of  
a) Three firms-one with the 70 percent of the market, and the other two with 20 and 10 percent of 
the market, respectively;  
Answer: 
Herfindahl index (H) is sum of square of market share of all firms in the industry.  
So H = 0.7^2 + 0.

Find the Herfindahl index for the industry composed of a) three firms-one with the 70 percent of the market, and the other two with 20 and 10 percent of the market, respectively; b)one firm with a 50...

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