Respuesta :
42 squared + 30 squared + 28 squared = 784 is the hhi for this market.
What is the HHI for a monopoly?
- Market concentration rises as a market gets nearer to monopoly status (and the lower its competition).
- For instance, if there was a monopoly in an industry, the Herfindahl-Hirschman Index (HHI) would be 10,000 and the industry would have a single firm with a 100% market share.
What is the typical cutoff for number of companies when calculating the HHI?
- A sector with an HHI below 0.15 (or 1,500) is considered to be non-concentrated.
- The likelihood of anti-competitive effects on mergers and acquisitions between 100 and 1500 points is low, so they probably don't require further investigation.
- When the HHI is between 0.15 and 0.25 (or 1,500 and 2,500), the concentration is moderate.
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