The closer a market's Herfindahl- Hirschman Index (HHI)is to the_____ less competitive the market, which means there are_____ firms in the market.
A)10,000; few
B)10,000; many
C)100; few
D)100; many

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, and a higher HHI (closer to 10,000) indicates a less competitive market with fewer firms dominating.

The Closer a Market's Herfindahl- Hirschman Index (HHI)is to The_____