Please help me answer the below Assume there are only four f

Please help me answer the below.

Assume there are only four firms in an industry and each has equal market share. What is the Herfindahl Index for such an industry.

a. 2,500

b. None of the answers are correct.

c. 250

d. There is not enough information available to determine the Index.

e. 100

Solution

Ans) A is the correct option. 2,500

Firms have equal share = 100/4 = 25% each

Since there are four firms

Herfindahl Index = 4*(25)^2 = 2500