If the Herfindahl-Hirschman Index in the market for single-use cameras equals 10,000,then the single-use camera industry is best characterized as
A) a monopoly.
B) monopolistic competition.
C) an oligopoly.
D) perfect competition.
E) either a monopoly or monopolistic competition.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration. An HHI of 10,000 indicates a very high level of concentration, which is characteristic of a monopoly, where a single firm dominates the entire market.

If the Herfindahl-Hirschman Index in the Market for Single-Use Cameras