In 2006, the five leading suppliers of digital cameras in the United States were: Canon, Sony, Kodak, Olympus, and Samsung. The combined market share of these five firms was 60.9 percent. The leading firm was Canon, with a market share of 18.7 percent. The own price elasticity for Canon’s cameras was -4.0 and the market elasticity of demand was −1.6. Suppose that in 2006, the average retail price of a Canon digital camera was $240, and that Canon’s marginal cost was $180 per camera.

Discuss the industry concentration of Canon in 2006. Do you think the industry environment is significantly different today? Explain.