Firm | Market Share (%) |
A | 50 |
B | 35 |
C | 8 |
D | 4 |
E | 2 |
F | 1 |
Refer to the data. Suppose that firms in this industry split up such that there were 10 firms, each with a 10 percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be
Multiple Choice
100 percent and 10,000.
40 percent and 40.
1,000 percent and 400.
40 percent and 1,000.
If the firms in the given industry split up in the manner mentioned in the question then the following series will be obtained:
The correct option is 40 per cent and 1000 as shown in the image.
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