2. The Herfindahl-Hirschman index Suppose that three firms make up the entire bicycle manufacturing industry. One has a 60% market share, and the other two have a 20% market share each. The Herfindahl-Hirschman index of this industry is A new firm, Abe's Bikes, enters the bicycle manufacturing industry and immediately captures a 20% share of the market. This would cause the Herfindahl-Hirschman index for the industry to Why is the largest possible value of the Herfindahl-Hirschman index i remain the same fall An index of 10,000 corresponds to 100 firms with a 1% ma An index of 10,000 corresponds to a monopoly firm with 1 rise An industry with an index higher than 10,000 is automatically regulated by the Justice Department.