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Sharifah Hafizah
on Nov 26, 2024

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The Herfindahl index measures the

A) size of the market share of the four largest firms in an industry.
B) sum of the squared values of market shares of firms in an industry.
C) increase in economic concentration resulting from a conglomerate merger.
D) effect of per se violation in antitrust cases.

Herfindahl Index

A measure of market concentration that is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers.

Economic Concentration

The degree to which a small number of firms occupy a large proportion of the market in a particular industry.

Market Shares

The portion of a market controlled by a particular company or product.

  • Comprehend the purpose and calculation of the Herfindahl Index in measuring market concentration.
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CA
Collin AveryDec 02, 2024
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