Assume That an Industry Is Significantly Affected by Import Competition

Multiple Choice

Assume that an industry is significantly affected by import competition from foreign suppliers. Taking this factor into account, it would mean that

A) the Herfindahl index would be significantly higher in that industry because there are more firms in the industry.
B) the industry is less concentrated than suggested by domestic concentration ratios.
C) there is a high degree of interindustry competition.
D) there is a low degree of interindustry competition.