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

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The Herfindahl index is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. A higher Herfindahl index indicates a higher concentration of market power. Since industry Y has a higher Herfindahl index (898) compared to industry X (860), it suggests greater market power in industry Y than in X.

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