Suppose there are 10 identical firms in an industry and each produces 10% of the total market sales.The HHI for this industry would indicate that the industry is:

A) unconcentrated.
B) monopolistic.
C) oligopolistic.
D) It cannot be determined from the information provided.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration to assess the competition level among firms.

Identical Firms

Companies that produce the same products or services, have the same production techniques, and face the same costs and market conditions.

Unconcentrated

Describes a market structure with many competitors, none of which have a significant share of the market.