What is the Herfindahl Index? The Pizza market is made up of 55 separate firms. The market share for the top 5 firms is shown in the table below plus the market share of the remaining 50 firms in this market. Pizza Hut Domino's Firm Little Caesars Pizza Inn/Pantera's Round Table all others (50 firms) Market Share 20.7% 17.0 6.7 2.2 2.0 51.4 a. How would you describe its market structure? Oligopoly ▼ b. What is the approximate Herfindahl index? Instructions: Round your answer to the nearest whole number.

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What is the Herfindahl Index?
The Pizza market is made up of 55 separate firms. The market share for the top 5 firms is shown in the
table below plus the market share of the remaining 50 firms in this market.
Pizza Hut
Domino's
Firm
Little Caesars
Pizza Inn/Pantera's
Round Table
all others (50 firms)
Market Share
20.7%
17.0
6.7
2.2
2.0
51.4
a. How would you describe its market structure?
Oligopoly
▼
b. What is the approximate Herfindahl index?
Instructions: Round your answer to the nearest whole number.
Transcribed Image Text:What is the Herfindahl Index? The Pizza market is made up of 55 separate firms. The market share for the top 5 firms is shown in the table below plus the market share of the remaining 50 firms in this market. Pizza Hut Domino's Firm Little Caesars Pizza Inn/Pantera's Round Table all others (50 firms) Market Share 20.7% 17.0 6.7 2.2 2.0 51.4 a. How would you describe its market structure? Oligopoly ▼ b. What is the approximate Herfindahl index? Instructions: Round your answer to the nearest whole number.
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