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Industries X and Y Both Have Four-Firm Concentration Ratios of 48

Question 5

Multiple Choice

Industries X and Y both have four-firm concentration ratios of 48 percent, but the Herfindahl index for X is 860, while that for Y is 898. These data suggest


A) greater market power in X than in Y.
B) greater market power in Y than in X.
C) both industries are monopolistically competitive.
D) that price competition is stronger in Y than in X.

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