Question: Suppose the refrigerator industry has an HHI of 2,500 while the aluminum? industry's HHI is? 6,850. Is this information sufficient to conclude that the aluminum market is less competitive than the market for? refrigerators?
A. Not necessarily. Although the HHI indicates a smaller number of? firms, those firms may compete intensely.
B. Not necessarily. It could indicate increased competition because firms could be more profitable.
C. No, because close substitutes exist in the refrigerator market.
D. Yes, because there are more firms in the refrigerator market.