- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 10. Identification of Market Structure
CFA Practice Question
Consider two firms in industry X. 

What is the Herfindahl index of this industry?
Correct Answer: 0.68
Herfindahl index = 0.202 + 0.802 = 0.68
User Contributed Comments 3
| User | Comment |
|---|---|
| Bududeen | uncompetitive |
| frants54 | very |
| lordcomas | Near monopoly |