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Fact 14.1.1
For automobiles the HHI is 2,350, for sporting goods it is 161, for batteries it is 2,883, and for jewellery it is 81.
-Refer to Fact 14.1.1. The market for automobiles is ________ and the market for sporting goods is ________.

Question

Quizplus · Accepted Answer

According to the information given, the market for automobiles has an HHI of 2,350, which indicates that it is moderately concentrated and has characteristics of an oligopoly. On the other hand, the market for sporting goods has an HHI of 161, which indicates that it is not concentrated and has characteristics of monopolistic competition. Therefore, the correct answer is C, which states that the market for automobiles is an oligopoly, and the market for sporting goods is monopolistic competition.

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