The Herfindahl Index Solves Which Problem with the N-Firm Ratio

Multiple Choice

The Herfindahl index solves which problem with the N-Firm ratio?

A) Inaccuracy when dealing with more than 4 firms
B) Inability to measure concentration if market shares are split evenly
C) Inability to measure concentration across borders
D) Invariance with changes in the size of the largest firms
E) High variability when firm sizes are small