A monopoly will have a Herfindahl-Hirschman Index equal to about:
A) 1.
B) 100.
C) 1,000.
D) 10,000.

Question

Quizplus · Accepted Answer

A monopoly is characterized by having complete control over a market, with no competitors. This means that the monopoly's market share is 100%, resulting in an HHI score of 10,000, the highest possible score. Choices A, B, and C would not be indicative of a monopoly, as they would suggest the presence of competition in the market.

A Monopoly Will Have a Herfindahl-Hirschman Index Equal to About