-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would
A) regard the industry as highly concentrated.
B) be against any two firms merging.
C) consider the market oligopolistic.
D) regard the industry as competitive.

Question

-The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would
A) regard the industry as highly concentrated. 
B) be against any two firms merging. 
C) consider the market oligopolistic. 
D) regard the industry as competitive.

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) measures market concentration. If the industry has many firms with small market shares, the HHI would be low, indicating a competitive market.

-The Table Above Lists the Market Shares of the Twenty