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Subjects · Leaving Cert Economics

Leaving Cert Economics: Competition policy & HHI

How often Competition policy & HHI comes up on the Economics papers, every year it was asked, and questions to try.

HL Asked on 4 of the last 5 Higher Level papers, most recently in 2025. most years

OL Asked on 1 of the last 5 Ordinary Level papers, most recently in 2022.

Competition policy & HHI, Higher Level(7 marks)

Quick ones on Competition policy & HHI.

(a)Three firms have market shares of 60%, 30% and 10%. What is the HHI?
  1. 100
  2. 4,600
  3. 1,000
(b)What is the HHI of a market with a single firm (pure monopoly)?
  1. 1
  2. 100
  3. 10,000
(c)A market has an HHI of 1,200. It is classed as…
  1. Unconcentrated (competitive)
  2. Highly concentrated
  3. Moderately concentrated
Show the answers

(a) 4,600

(b) 10,000

(c) Unconcentrated (competitive)

Your turn: Higher Level questions on Competition policy & HHI.

Higher Level

Asked on 4 of the last 5 Higher Level papers, most recently in 2025. most years

Every paper, year by year

YearWhere it came up
2025Q11
2024Not asked
2023Q12
2022Q12
2021Q11

Links open the State Examinations Commission’s paper for that year.

Ordinary Level

Asked on 1 of the last 5 Ordinary Level papers, most recently in 2022.

Every paper, year by year

YearWhere it came up
2025Not asked
2024Not asked
2023Not asked
2022Q11
2021Not asked

Links open the State Examinations Commission’s paper for that year.

More Competition policy & HHI questions

Competition policy & HHI, 2 marks

The Herfindahl-Hirschman Index (HHI) measures?

  1. The rate of inflation
  2. The level of unemployment
  3. How concentrated a market is
Show the answer

How concentrated a market is

The HHI adds up the squares of each firm's percentage market share. A higher number means a few firms dominate. A monopoly scores the maximum of 10,000.

Competition policy & HHI, 3 marks

Why might the CCPC block a merger of two large rival firms?

  1. It would create more rival firms in the market
  2. It could reduce competition and raise prices
  3. It would lower prices for consumers in the market
Show the answer

It could reduce competition and raise prices

If two big rivals merge, the new firm may gain enough market power to raise prices or cut quality. Regulators can block such mergers or put conditions on them.

Competition policy & HHI, 3 marks

A market's HHI rises after a merger. This shows the market has become?

  1. More concentrated
  2. More competitive
  3. Perfectly competitive
Show the answer

More concentrated

The HHI adds up the squares of market shares. A merger creates a bigger firm, so the index rises, meaning less competition and more market power.

Other Economics topics

All of Leaving Cert Economics