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 and how is the industry categorized?

A) 1700; moderately concentrated
B) 1425; moderately concentrated
C) 1600; moderately concentrated
D) 2600; highly concentrated