The largest Herfindahl-Hirschman index possible is _____,and the industry is a(n)_____.
A)10;monopoly
B)10,000;monopoly
C)100,000;monopoly
D)100,000;oligopoly

Question

Quizplus · Accepted Answer

The largest Herfindahl-Hirschman Index (HHI) possible is 10,000, indicating a monopoly. This occurs when a single firm controls the entire market, resulting in an HHI of 10,000, which is calculated as the sum of the squares of the market shares of all firms in the industry (in this case, 100^2).

The Largest Herfindahl-Hirschman Index Possible Is _____,And the Industry Is