If the four-firm concentration ratio in an oligopolistic industry is 100 percent and each firm has an equal percentage of sales, the Herfindahl index is: A) 10,000. B) 2,500. C) 3,750. D) 1,000.

Respuesta :

The Herfindahl index is 2500.

What is the Herfindahl index?

An oligopolistic industry is an industry where there are few large firms operating in the industry. This is because there are relatively high barriers to entry. The firms set the price in an oligopolistic industry.

The four-firm concentration ratio calculates the concentration ratio of the 4 largest firms in an industry.

The concentration ratio of each firm = 100% / 4 = 25%

The Herfindahl index is calculated by squaring the market share of each firm in the industry.

4 x (25²) = 2500

For more information about concentration ratio,  please check : https://brainly.com/question/9430331

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