Industries X and Y both have four-firm concentration ratios of 65 percent, but the Herfindahl index for X is 1,500 while that for Y is 2,000. These data suggest:
A. greater market power in X than in Y.
B. greater market power in Y than in X.
C. that X is more technologically progressive than Y.
D. that price competition is stronger in Y than in X.
Answer: B
Economics
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