100

For example, a monopoly industry with a single dominant firm is described by a CR4 = 100 and an HHI = 1002 = 10,000. A vigorously competitive industry where each of the leading four firms enjoys market shares of 25 percent is also described by a CR4 = 100, but features an HHI = 252 +252 +252 +252 = 2,500. Like concentration ratios, the HHI approaches zero for industries characterized by a large number of very small competitors.

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