If the U.S. winemaking industry has an HHI of 1,250. The industry can best be classified as:
A) a monopoly.
B) an un-concentrated market.
C) a highly concentrated market.
D) a moderately concentrated market.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration. An HHI below 1,500 indicates an un-concentrated market, so with an HHI of 1,250, the U.S. winemaking industry is best classified as an un-concentrated market.

If the US Winemaking Industry Has an HHI of 1,250