The Herfindahl index for a pure monopolist is?
Understand the Problem
The question is asking about the Herfindahl index specifically in the context of a pure monopoly market structure. The Herfindahl index is a measure of market concentration, and for a pure monopolist, it would theoretically be at its highest value since there is only one firm in the market. This highlights the degree of market power held by the monopolist.
Answer
10,000
The final answer is 10,000
Answer for screen readers
The final answer is 10,000
More Information
The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of all firms in the market. For a pure monopolist, which has 100% market share, the HHI is 10,000 (100^2).
Tips
Ensure you know the formula for HHI: sum of the squares of the market shares.
Sources
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