There are three banks in East Panhandle.First State Bank which currently has 25 percent of the deposits,Second State Bank which currently has 40 percent of the deposits,and Third State Bank which has the rest.According to the Department of Justice Guidelines,this market will be identified as:

Question

Quizplus · Accepted Answer

The market is highly concentrated because the Herfindahl-Hirschman Index (HHI) is calculated as 25^2 + 40^2 + 35^2 = 3250, which is above the threshold of 2500 for a highly concentrated market according to the Department of Justice Guidelines.

There Are Three Banks in East Panhandle