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AP® Microeconomics

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Moderate

4 Book Store Oligopoly

APMICR-KX9ZVE

Assume that Pat, Connie, Emmanuel and Nadia all own bookstores in a small county, and that their levels of market share are such that the industry is oligopolistic.

If their four-firm concentration ratio is $100\%$ and each firm has an equal percentage of sales, the Herfindahl Index for their industry is:

A

$10,000$

B

$2,500$

C

$3,750$

D

$1,000$

E

$400$