The maximum value that the Herfindahl-Hirschman Index can attain is
A) 1.
B) 10.
C) 100.
D) 10,000.

Name: The maximum value that the Herfindahl-Hirschman Index can attain is A) 1. B) 10. C) 100. D) 10,000.
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Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the market. If there is only one firm in the market (a monopoly), the market share is 100%, and the HHI is 100^2 = 10,000.

The Maximum Value That the Herfindahl-Hirschman Index Can Attain Is