Suppose the Herfindahl indexes for industries A, B, and C are 2,200, 2,000, and 1,600, respectively. These data imply

A) that market power is greatest in industry C.
B) that market power is greatest in industry B.
C) that market power is greatest in industry A.
D) nothing about the degree of concentration across the three industries.

Market Power

The ability of a firm or group of firms to manipulate the price of goods or services in the market due to lack of competition or control over a significant portion of the market supply.

Herfindahl Indexes

Measures of market concentration and competition, calculated as the sum of the squares of the market shares of all firms in an industry.