If an industry's Herfindahl-Hirschman Index is less than 1, the industry is likely to be
A) competitive.
B) an oligopoly.
C) a monopoly.
D) technologically inefficient.

Name: If an industry's Herfindahl-Hirschman Index is less than 1, the industry is likely to be A) competitive. B) an oligopoly. C) a monopoly. D) technologically inefficient.
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Question

Quizplus · Accepted Answer

A Herfindahl-Hirschman Index (HHI) of less than 1 indicates a competitive industry with many small firms, as the index measures market concentration.

If an Industry's Herfindahl-Hirschman Index Is Less Than 1, the Industry