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The Concentration and Herfindahl Indices Computed by the U

Question 14

Multiple Choice

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


A) they overstate the actual level of concentration in markets served by foreign firms.
B) they understate the degree of concentration in local markets, such the gasoline market.
C) Both A and B are correct.
D) None of the statements are correct.

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