The closer a market's Herfindahl- Hirschman Index (HHI)is to_____ the more competitive the market, which means there are _____firms in the market.
A)100; many
B)10,000; many
C)100; few
D)10,000; few

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, and a lower HHI (closer to 0 or 100) indicates a more competitive market with many firms. A higher HHI (closer to 10,000) suggests a less competitive market with fewer firms.

The Closer a Market's Herfindahl- Hirschman Index (HHI)is To_____ the More