Economics Q89

0. A market has 5 suppliers, each of them with 20 percent of the market. What are the concentration ratio and the HHI of the top three firms?

  • Option : C
  • Explanation : The concentration ratio for the top three firms is 20 + 20 + 20 = 60 percent. The HHI is 0.20² * 3 = 0.12.
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