-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index
A) the industry is an oligopoly.
B) the industry is a monopoly.
C) the industry is competitive.
D) the firms in the industry will not be allowed to merge.

Question

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index
A) the industry is an oligopoly. 
B) the industry is a monopoly. 
C) the industry is competitive. 
D) the firms in the industry will not be allowed to merge.

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) measures market concentration. A low HHI indicates a competitive industry, which is likely the case if there are twenty makers of personal computers with distributed market shares.

-The Table Above Lists the Market Shares of the Twenty