4.3 Calculate the Herfindahl–Hirschman Index (HHI)

for each of the following markets. Using your results, arrange the markets from most competitive to least competitive.

a. The market has two firms, each with a market share of 50 percent.

b. The market has two firms, one with a market share of 80 percent and the other with a market share of 20 percent.

c. The market has 10 firms, 5 with a market share of 16 percent each and 5 with a market share of 4 percent each.

d. The market has 10 firms, 2 with a market share of 34 percent each and 8 with a market share of 4 percent each.