42. The industry elasticity of demand for X is -3, while the elasticity of demand for an individual manufacturer of product X is -12. Based on the Rothschild approach to measuring market power, we conclude that

A) there is significant monopoly power in this industry.

B) the industry is competitive.

C) the four-firm concentration ratio for this industry is 0.25.

D) the Herfindahl index for this industry is 2500.

43. The concentration and Herfindahl-Hirschman 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) national data tends to understate the degree of concentration when the relevant markets are local.

C) the definition of product classes used to define an industry affects the results.

D) All of the responses are correct.