If the Herfindahl-Hirschman Index in the market for single-use cameras equals 10,000, then the single-use camera industry is best characterised as
A) perfect competition.
B) monopolistic competition.
C) a monopoly.
D) an oligopoly.
E) either a monopoly or monopolistic competition.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration. An HHI of 10,000 indicates a highly concentrated market, which is characteristic of a monopoly.

If the Herfindahl-Hirschman Index in the Market for Single-Use Cameras