Asked by Brooke Jefferson on Jun 10, 2024
Verified
Which of the following is a measure of the degree of industry concentration?
A) Dow Jones Industrial Average
B) Herfindahl Index
C) Employment Cost Index
D) S&P 500 Index
Herfindahl Index
An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.
Industry Concentration
A measure of the extent to which a small number of firms dominate the total production, sales, or market share in an industry.
- Identify measures of industry concentration and their implications.
Verified Answer
CM
Carson MartinJun 13, 2024
Final Answer :
B
Explanation :
The Herfindahl Index is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. It is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.
Learning Objectives
- Identify measures of industry concentration and their implications.
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