Calculate the hhi and determine this market is concentrated

Reference no: EM133613781

Problem: Suppose there are N=10 hospitals in a market, each with si percent of the market share, where PN i=1 si = 1. (a) Suppose si = 1 10 for all i. What is the Herfindahl-Hirshchman Index (HHI)? (b) Is this considered a concentrated or highly concentrated market based on the FTC thresholds? (c) Now suppose s1 = 5 10 , s2 = 3 10 , s3 = 2 10 , and si = 0 for i = 4, ...,10. Calculate the HHI and determine if this market is concentrated or highly concentrated.

Reference no: EM133613781

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