Practice question · Multiple choice
Which spreadsheet formula computes HHI from market shares in cells A1:A5 (as percentages)?
Hints
- The index sums the squares of the shares.
- One function multiplies a range by itself and sums the results.
Show the answer
B. =SUMPRODUCT(A1:A5,A1:A5)
Why
HHI = sum of squared shares. SUMPRODUCT(A1:A5, A1:A5) squares each share and sums, equivalent to SUMSQ(A1:A5) in some versions.
Practise Monopolistic Competition and Oligopoly
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