Calculate the Herfindahl-Hirschman Index (HHI) for each of the following markets.
Market A has two firms, each with a market share of 50 percent.
The HHI of these two firms is _______
Market B has two firms, one with a market share of 90 percent and the other with a market share of 10 percent.
The HHI of these two firms is _______
Market C has firms, 5 with a market share of 16 percent each and 5 with a market share of 4 percent each.
The HHI of these firms is _______
Market D has firms, 2 with a market share of 34 percent each and 8 with a market share of 4 percent each.
The HHI of these firms is _______
Using your results, arrange the markets from most competitive to least competitive.
A. Market B, Market A, Market D, Market C
B. Market C, Market D, Market A, Market B
C. Market D, Market C, Market B, Market A
D. Market C, Market B, Market A, Market D