-A Herfindahl index value of 20, for a particular industry, indicates that the industry is most likely to be:
A)perfectly competitive.
B)highly concentrated.
C)oligopolistic.
D)monopolistic.
E)made up of illegal firms.

Question

-A Herfindahl index value of 20, for a particular industry, indicates that the industry is most likely to be:
A)perfectly competitive. 
B)highly concentrated. 
C)oligopolistic. 
D)monopolistic. 
E)made up of illegal firms.

Quizplus · Accepted Answer

A Herfindahl index value of 20 indicates a very low level of concentration, suggesting a perfectly competitive industry with many small firms.

-A Herfindahl Index Value of 20, for a Particular Industry