What is the herfindahl index for this industry

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1. Suppose that the 6 firms in an industry have market shares of 35%, 20%, 15%, 15%, 10%, and 5%.

a) What is the four-firm concentration ratio in this industry? Show all calculations and explain what a concentration ratio.

b) What is the Herfindahl index for this industry? Show all calculations and explain what a Herfindahl index .

c) Suppose another industry has a Herfindahl index of 4000. What can you conclude about the relative competitiveness of these two industries?

Reference no: EM13184453

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