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Calculating HHI Index

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In the market for bottled water, Fresh Springs has a 40 percent share of the market, Swiss Springs has a 27 percent share, L'eau de France has a 8 percent share, and Rocky Mountain Water has a 5 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?

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Solution:

Firm Market Share
Fresh Springs ...

Solution Summary

The solution describes the formula and steps for determine HHI Index.

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