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7. Calculate the Herfindahl-Hirschman index (HHI) for each of the following industries. Which industry is the most concentrated? a. An industry with five firms that have the following market shares: 50 percent, 30 percent, 10 percent, 5 percent, and 5 percent. b. An industry with five firms that have the following market shares: 60 percent, 20 percent, 10 percent, 5 percent, and 5 percent. c. An industry with five firms, each of which has a 20 percent market share.
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Ajax, Inc. has appointed you to examine the demand for its line of telecommunications devices in 35 different market areas.
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