Which of the following Herfindahl-Hirschman indices is most likely to indicate a perfectly competitive market?
A) 100
B) 1,800
C) 10,000
D) 100,000

Name: Which of the following Herfindahl-Hirschman indices is most likely to indicate a perfectly competitive market? A) 100 B) 1,800 C) 10,000 D) 100,000
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Question

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A Herfindahl-Hirschman index (HHI) of 100 indicates a highly competitive market, as it suggests a large number of firms with relatively equal market shares.

Which of the Following Herfindahl-Hirschman Indices Is Most Likely to Indicate