The Herfindahl-Hirschman Index is definitely larger in a ________ market than in a ________ market.
A) monopoly; perfectly competitive
B) monopolistic competitive; monopoly
C) perfectly competitive; monopoly
D) perfectly competitive; monopolistic competitive

Question

Quizplus · Accepted Answer

In a monopoly market, there is only one seller, so the Herfindahl-Hirschman Index (HHI) is very high. In a perfectly competitive market, there are many sellers, so the HHI is very low.

The Herfindahl-Hirschman Index Is Definitely Larger in a ________ Market