-Consider a Market Consisting of Seven Firms with Market Shares

Multiple Choice

-Consider a market consisting of seven firms with market shares of 40, 20, 10, 10, 8, 7, and 5 percent, respectively. Which of the following statements is true?

A) The four-firm concentration ratio would be 0.03.
B) The Herfindahl index would be 1,000.
C) The Herfindahl index would be 2,228.
D) The Herfindahl index would be 1,500.
E) The Herfindahl index would be 2,338.