Ask Question
26 July, 10:09

Suppose an industry has 8 firms each with 9% of sales, and 4 firms each with 7% of sales. The HHI for this industry is:

A) 100

B) 844

C) 5968

D) 8496

E) None of these

+4
Answers (1)
  1. 26 July, 11:19
    0
    B) 844

    Explanation:

    The HHI is a formula to find the market concentration of the firms in a particular market. In order to find the HHI we square the shares of each firm in the market and sum them up So the formula becomes

    (S1) ^2 + (S2) ^2 ... (SN) ^2

    In this question we have 8 firms with 9% share and 4 firms with 7% share so we will put these market shares in the formula

    8 * (9^2) + 4 * (7^2) = 844
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose an industry has 8 firms each with 9% of sales, and 4 firms each with 7% of sales. The HHI for this industry is: A) 100 B) 844 C) ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers