question archive One among the following is "a measure of the degree of seller concentration in a market that takes into account the total number of firms in the market and their relative size distribution"
One among the following is "a measure of the degree of seller concentration in a market that takes into account the total number of firms in the market and their relative size distribution"
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One among the following is "a measure of the degree of seller concentration in a market that takes into account the total number of firms in the market and their relative size distribution".
a) Gini Coefficient,
b) Krugman Curve,
c) Friedman Index,
d) Herfindahl Index.
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- The correct answer is d) Herfindahl Index.
The Herfindahl Index, also referred to as HHI, is one of the metrics used to evaluate the market concentration of a specific industry. This metric takes into account the market shares of all the firms that participate in the industry. The Herfindahl index ranges between 10,000 and 0 where 10,000 represents a pure monopoly and 0 represents an infinite number of firms. Therefore, the correct answer is option d). On the other hand, option a) is used to measure the inequalities of society. Option b) is used to show the relationship between taxpayers and government revenue. Option c) is associated with cryptography.
