Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.
Sagot :
Answer:
4400
Increase
c. An index of 10,000 corresponds to a monopoly firm with 100% market share
Explanation:
Here are the options to the last question
Why is the largest possible value of the Herfindahl index 10,000 ?
a. An index of 10,000 corresponds to 100 firms with a 1% market share each
b. An industry with an index higher than 10,000 is automatically regulated by the Justice Department
c. An index of 10,000 corresponds to a monopoly firm with 100% market share
HHI index = 60² + 20² + 20² = 4400
If one of the firms leaves the industry, the market share would be distributed between the two firms and this would cause the HHI index to increase as firm's concentration would increase
If only one firm operates in the industry, its market share would be 100% and its HHI index would be 100² = 10,000. For an industry to exist there has to be at least one firm operating in the industry,
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.
