-A Market Has 4 Firms in It

Multiple Choice

-A market has 4 firms in it. The market shares are in the table above. The table represents a(n) ________ market because its ________.

A) competitive; Herfindahl-Hirschman Index (HHI) equals 1,425
B) uncompetitive; Herfindahl-Hirschman Index (HHI) equals 65 per cent
C) uncompetitive; four-firm concentration ratio exceeds 60 per cent
D) competitive; four-firm concentration ratio equals 65 per cent
E) perfectly competitive; Herfindahl-Hirschman Index (HHI) is less than 1,500