An industry in which there are five firms each accounting for 20 percent of the market has an HHI of 2,000.

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Shakiera Davis · Accepted Answer

Final Answer : True, Explanation :  The Herfindahl-Hirschman Index (HHI) is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. For five firms each with 20% market share, the calculation is 5*(20^2) = 5*400 = 2000.

An industry in which there are five firms each accounting for 20 percent of the market has an HHI of 2,000.

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