The sum of the squared values of market shares of firms in an industry is referred to as the

A) concentration ratio.
B) Herfindahl index.
C) variance value.
D) antitrust index.

Herfindahl Index

An economic index that quantifies the concentration of market power within industries by adding up the squared market share percentages of all participants.

Market Shares

The portion of a market controlled by a particular company, measured by sales volume or revenue compared to competitors.

Concentration Ratio

A measure used to evaluate the extent of market control held by the largest firms within an industry.