Ask Question
26 September, 13:31

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

+3
Answers (1)
  1. 26 September, 13:58
    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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers