The Largest Value the Herfindahl Index Can Have Is

question 165

Multiple Choice

The largest value the Herfindahl index can have is

• A)100, which would indicate a monopoly
• B)100 for firms equal in size
• C)100, 000
• D)10, 000, which would indicate a pure monopoly
• E)infinity

---

Definitions:

Regulatory Environment

Comprises laws, regulations, and governmental guidelines that govern the operation of businesses and industries.

Political Environment

Refers to the impact of government actions, stability, policies, and regulations on an organization's operations.

Equilibrium Price

The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.

Supply

The number of products—goods and services—that businesses are willing to sell at different prices at a specific time.