Suppose the Herfindahl indexes for industries A, B, and C are 1,200, 5,000, and 7,500 respectively. These data imply that

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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 and thus more market power. With indexes of 1,200 for industry A, 5,000 for industry B, and 7,500 for industry C, industry C has the highest index and therefore the greatest market power.

Suppose the Herfindahl Indexes for Industries A, B, and C