Given the revenues of the 4 hospitals in Jupiter 1 Primary c

Given the revenues of the 4 hospitals in Jupiter 1. Primary care services (20 million 2. JFK emergency are (40 million) 3.Palm Beach Gardens (80 milion) 4. Jupiter ( 3x the revenue of Primary Care Services of Jupiter) Solve for the HHI of Jupieter

Solution

The HHI index is calculated to know the market concentration. It is calculated simply by squaring the market contribution of each firm and summing the squared values. In this question

Revenue of primary care services 20 ml

JKF emergency care 40ml

Palm beach and garden 80 ml

Jupiter 60 ml ( 3*20)

HHi = 20^2+40^2+80^2+60^2

HHI =12000