if-a-firm-becomes-a-monopoly-what-happens-to-its-market-share-and-the-industrys-

Question

If a firm becomes a monopoly, what happens to its market share and the industry's HHI?

Accepted Answer

The firm's market share becomes 100%, and the HHI reaches its maximum value.

Answer

The firm's market share decreases, and the HHI decreases.

Answer

The firm's market share remains the same, and the HHI remains unchanged.

Answer

The firm's market share becomes 50%, and the HHI is halved.