Asked by
Al Haitham Al Mabsali
on Nov 26, 2024
Verified
The Herfindahl index for a pure monopolist is
A) 100.
B) 10,000.
C) 100,000.
D) 10.
Herfindahl Index
An index that gauges the proportions of entities in a market sector, highlighting the extent of competition among them.
Pure Monopolist
A market structure where a single company is the sole provider of a product or service, with no close substitutes, giving it significant control over price.
- Become proficient in the utilization of concentration ratios and the Herfindahl index to analyze market concentration.
Verified Answer
KL
Learning Objectives
- Become proficient in the utilization of concentration ratios and the Herfindahl index to analyze market concentration.