Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 13 - Monopolistic Competition and Oligopoly - Review Questions: 1

Answer

No.of firms in an industry = 10 Market share of each firm = 10 Herfindahl's index = 10 x 10^{2} = 10 x 100 = 1,000

Work Step by Step

Given that there are 10 firms in an industry with a market share of 10% each. Herfindahl's index is defined as the sum of squares of percentage market shares of all the firms in the industry
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