The Herfindahl-Hirschman Index Tends to Be Lower When

Multiple Choice

The Herfindahl-Hirschman index tends to be lower when

A) one firm has 81 percent market share and all others have 1 percent each.
B) there are more firms in the industry.
C) the shares of each firm are more unequal.
D) the four largest firms control over 80 percent of the market share.
E) one or two firms have a large market share.