Option A is the right choice.
It is assumed that the market shares of the six companies that make up the industry are 30, 30, 10, 10, and 10%. The industry's Herfindahl index is 2200.
The Herfindahl index measures a company's size in relation to the industry it operates in and serves as a gauge of how fiercely it is competing with other businesses. Antitrust authorities have continued to use HHI, mainly to assess and comprehend how mergers will impact their associated markets.
Share (A) = 2200
Industry Market Size (Market Share)²
1 30 30² = 900
2 30 900
3 10 10² = 100
4 10 100
5 10 100
6 10 100
SUM 100 2200
Therefore, the Herfindahl index for this industry is 2200 which makes option A the right answer.
To know more about the Herfindahl index, refer to this link:
https://brainly.com/question/10559061
#SPJ4
COMPLETE QUESTION:
Assume six firms composing an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl index for this industry is
A) 2,200. B) 1,600. C) 80. D) 2,000.
