Answered

IDNLearn.com is the perfect place to get answers, share knowledge, and learn new things. Discover in-depth and reliable answers to all your questions from our knowledgeable community members who are always ready to assist.

In the market for bottled water, fresh springs has a 30 percent share of the market, swiss springs has a 27 percent share, l'eau de france has a 13 percent share, and mountain water has a 10 percent share. the rest of the market consists of 20 firms with a 1 percent share of the market each. what is the value of the herfindahl-hirschman index

Sagot :

Anthougoidn

The value of the Herfindahl-Hirschman Index, calculated for the market for bottled water, is 2,298.

What is the Herfindahl–Hirschman Index?

The Herfindahl–Hirschman Index, HHI, is a commonly accepted measure of market concentration and competitiveness.

The HHI is calculated by squaring the market share of each competing firm and then summing the resulting numbers.

Data and Calculations:

Product           Market Share     Squared Market Share

Fresh springs         30%                    900(30% x 30%)

Swiss springs         27%                    729 (27% x 27%)

L'eau de France      13%                    169 (13% x 13%)

Mountain water      10%                    100 (10% x 10%)

Rest of market       20%                   400 (20% x 20%)

Sum of squared market share =    2,298

Thus, the value of the Herfindahl-Hirschman Index is 2,298, reflecting a low market concentration.

Learn more about the Herfindahl-Hirschman Index at Herfindahl-Hirschman Index at https://brainly.com/question/17180005

#SPJ1

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thank you for choosing IDNLearn.com for your queries. We’re committed to providing accurate answers, so visit us again soon.