HR Practice Quiz

HR Practice Quiz - 1. Calculate the Herfindahl-Hirschman...

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Calculate the Herfindahl-Hirschman Index (HHI) for this period. Market shares last period of every company in the Sensor industry is as follows: Company A 30.6% Company B 15% Company C 11.2% Company D 21.8% Company E 21.4% Student Response Value Correct Answer Feedback A. 1,869.56 B. 936.36 C. 88.8 D. 2,220 100% General Feedback: Calculate square of each company market share percentages. Add squares of all company market shares. Score: 20/20 2. If HHI from one period to the next changes more than 200-300 points in a highly concentrated market, that would indicate one or more companies are dominating a market perhaps approaching monopolistic tendencies. Student Response Value Correct Answer True 100% True General Feedback: The change in HHI is sometimes more important than the actual HHI index. It may indicate stabilized market shares or that one or two companies are aggressively competitive in taking share. This is a concern to the DOJ in monitoring monopolistic trends. Score:
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HR Practice Quiz - 1. Calculate the Herfindahl-Hirschman...

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