Suppose that a particular industry has a four-firm concentration ratio of 85 and a Herfindahl index of 3,000. Most likely, this industry would achieve

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A concentration ratio of 85 suggests that the industry is highly concentrated, meaning that a few firms dominate the market. This could lead to market power and potentially higher prices, which would result in a lack of allocative efficiency. The Herfindahl index of 3,000 reinforces the idea of high concentration and market power. Therefore, this industry is likely to lack both productive and allocative efficiency.

Suppose That a Particular Industry Has a Four-Firm Concentration Ratio