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The main drawback of the Herfindahl-Hirschman Index (HHI) is that:

It only goes to 100

It does not work for a monopoly market

It does not work for a perfectly competitive market

It has too many letters in it

You have to know the market share for all the firms in the market.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91421123

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