Consider an Industry That Is Made Up of Nine Firms

Multiple Choice

Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows:
a. Firm A: 30%
b. Firm B: 20%
c. Firms C, D, and E: 10% each
d. Firms F, G, H, and J: 5% each
What is the value of the Herfindahl-Hirschman Index?

A) 1,425
B) 1,600
C) 1,700
D) 2,600