In an oligopoly market,the Herfindahl-Hirschman Index is usually
A)below 2,500.
B)zero.
C)above 2,500.
D)equal to 10,000.
E)between 100 and 1,000.

Question

Quizplus · Accepted Answer

In an oligopoly market, the Herfindahl-Hirschman Index (HHI) is usually above 2,500. HHI measures market concentration, and a higher HHI indicates greater market power held by a small number of firms. In an oligopoly, the market is dominated by a few large firms, resulting in a higher HHI. A HHI above 2,500 indicates a highly concentrated market where there is a significant risk of anti-competitive behavior.

In an Oligopoly Market,the Herfindahl-Hirschman Index Is Usually