The CORRECT ranking of the four basic market structures from low (Herfindahl-Hirschaman Index) HHI to high HHI is

Question

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The Herfindahl-Hirschaman Index (HHI) measures the concentration of market power in a given industry. It ranges from 0 to 10,000, with a low HHI indicating a highly competitive market, and a high HHI indicating a highly concentrated market. Given this, the correct ranking of the four basic market structures from low HHI to high HHI is perfect competition (0-1,000), monopolistic competition (1,000-2,500), oligopoly (2,500-7,500), and monopoly (7,500-10,000). Therefore, the best choice is C, which correctly lists the four market structures in order of increasing HHI.

The CORRECT Ranking of the Four Basic Market Structures from Low