In order for the Federal Trade Commission to consider an industry concentrated,the industry must have a Herfindahl-Hirschman Index of
A) less than 1,000.
B) between 1,000 and 1,400.
C) greater than 1,800.
D) less than zero.
E) between 1,400 and 1,800.

Question

Quizplus · Accepted Answer

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration, and the Federal Trade Commission considers markets to be concentrated if the HHI is greater than 1,800.

In Order for the Federal Trade Commission to Consider an Industry