If the Herfindahl-Hirschman Index for an industry is 100,then there must be ____ firms in that industry.

A) 1
B) 10
C) 100
D) 1,000
E) 10,000

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of each firm within the sector.

Industry

Refers to the production of goods or services within an economy, categorized into sectors such as manufacturing, services, and agriculture.

Firms

Business organizations engaged in offering goods or services to consumers, often characterized by the ownership structure and size.