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In an industry there are only 20 firms and each of them has equal share.

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In an industry there are only 20 firms and each of them has equal share. Compute Herfindahl Hirschman Index

and state the level of concentration in the industry.

A.

HHI = 500; High Concentration

B.

HHI = 8000; low Concentration

C.

HHI = 8000; High Concentration

D.

HHI = 500; Low Concentration

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