Suppose that Industry X has two firms with equal market shares, and Industry Y has three firms with 65 percent, 30 percent, and 5 percent market shares, respectively. Which of the following is TRUE?
A. The HHI for Industry X is 50 higher than the HHI for Industry Y.
B. The HHI for Industry X is 100 higher than the HHI for Industry Y.
C. The HHI is the same between Industry X and Industry Y.
D. The HHI for Industry X is 150 lower than the HHI for Industry Y.
Answer: D
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