A market in which the Herfindahl-Hirschman Index (HHI)lies between 1,000 and 1,800 is regarded as being
A)a monopoly.
B)an oligopoly.
C)a perfectly competitive market.
D)a moderately competitive market.
E)a potential matter of concern for regulators.

Question

Quizplus · Accepted Answer

A market with an HHI between 1,000 and 1,800 is considered moderately competitive. It is not a monopoly or perfectly competitive, but also not concentrated enough to be considered an oligopoly. It may be a potential matter of concern for regulators as it is not highly competitive but may not require intervention.

A Market in Which the Herfindahl-Hirschman Index (HHI)lies Between 1,000