To Calculate the Herfindahl Index

Multiple Choice

To calculate the Herfindahl index,

A) add the market shares of all firms in an industry
B) add the market shares of any four firms in an industry and then square them
C) add the market shares of the four largest firms in an industry
D) square the market shares of all firms in an industry and then add them
E) square the market shares of the four largest firms in an industry and then add them