The Herfindahl-Hirschman Index is calculated by ________. A) ...

[penza]

The Herfindahl-Hirschman Index is calculated by ________.
 
  A) adding the market share of each firm in the market and squaring the resulting number
  B) squaring the market share of each firm competing in the market and then summing the resulting numbers
  C) adding the number of firms in the market and squaring the resulting number
  D) adding the profit earned by each firm in the market

Question 2

Use the economic way of thinking to complete the following statement: An entrepreneur who owns his own building
 
  A) enjoys the building as a free good.
  B) sacrifices rental income he could have been earned on the building.
  C) enjoys lower costs than other entrepreneurs who choose to rent buildings from others.
  D) enjoys larger economic profits compared to other entrepreneurs who choose to rent buildings from others.

[kaillie]

Answer to Question 1

B

Answer to Question 2

B

[penza]

Thank you

[kaillie]

Happy to help you