The concentration and Herfindahl indices computed by the U.S.Bureau of Census must be interpreted with caution because

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All of the statements associated with this question are correct. The concentration and Herfindahl indices computed by the U.S. Bureau of Census can be influenced by the definition of product classes used to define an industry, and may also be affected by the presence of foreign firms. Additionally, they may not fully capture the degree of concentration in local markets. Therefore, these indices should be interpreted with caution.

The Concentration and Herfindahl Indices Computed by the U