For the two industries with market shares listed below, which of the following would be true?
Table 14-1
?
Firm 1
Firm 2
Firm 3
Firm 4
Firm 5
Firm 6
Industry A
50%
10%
10%
10%
10%
10%
Industry B
20%
20%
20%
20%
10%
10%
A. The concentration ratio would be the same for both industries but the HHI would be higher for Industry A.
B. The concentration ratio would be the same for both industries but the HHI would be higher for Industry B.
C. The HHI would be the same for both industries but the concentration ratio would be higher for Industry B.
D. Both the concentration ratio and the HHI would be the same for both industries.
Answer: A
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