Answer:
D. It gives much greater or higher weight to larger firms than to smaller firms in an industry.
Explanation:
HERFINDAHL INDEX can be defined as an Index, that help to effective and efficiently measures the amount of market concentration in an industry or an organisation in order to know whether such industry is competitive in nature or not and it has well enables us to know the amount of competition that exist among them reason been that the level of competition that exist can easily be detected when HERFINDAHL INDEX is made use of,which is why HERFINDAHL index gives much greater weight to larger firms such as 50 largest firm than to smaller firms in an industry.
