The Concentration and Herfindahl Indices Computed by the U

question 15

Multiple Choice

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

• A) they may overstate the actual level of concentration in markets served by foreign firms.
• B) they may understate the degree of concentration in local markets.
• C) the definition of product classes used to define an industry affects the results.
• D) All of the statements associated with this question are correct.

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Definitions:

Iroquois Nation

A historically powerful northeast Native American confederacy in North America, known for the Iroquois League which consisted of six nations.

French and Indian War

A conflict from 1754 to 1763 between Britain and France in North America, part of the larger Seven Years' War, involving Native American allies on both sides.

Ohio Valley

A geographical region in the United States that encompasses parts of the states around the Ohio River, including parts of Ohio, Kentucky, Indiana, and Pennsylvania.

Comanche

A Native American tribe historically located in what is now Texas, Oklahoma, and New Mexico, known for their horseback riding and warrior skills.