An industry with a Herfindahl-Hirschman index of 10,000 would have no more than ______ firm(s).

Question

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The Herfindahl-Hirschman index (HHI) ranges from 0 to 10,000, where a higher value indicates a more concentrated market. In a perfectly competitive market, the HHI would be 0, indicating that there are many small firms with a roughly equal market share. In a monopoly, the HHI would be 10,000, indicating that there is only one firm with 100% market share. Therefore, an industry with an HHI of 10,000 would have only one firm.

An Industry with a Herfindahl-Hirschman Index of 10,000 Would Have