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Unformatted text preview: .30+.25+.10+.05=.70 Industry B .15+.12+.08+.05=.39 The industry that is more concentrated is Industry A. B. Calculate the Herfindahl - Hirschman Index for each industry Industry A 30*30+25*25+10*10+5*5=1,650 Industry B 15*15+12*12+8*8+4*4=449 Four firm concentration for industry A=Market share of four firms=(30+25+10+5)=70% Four firm concentration for industry B=Market share of four firms=(15+12+8+4)=39% Industry A is more concentrated....
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This note was uploaded on 11/07/2010 for the course CS 24 taught by Professor Williams during the Spring '10 term at Camden County.
- Spring '10