The smaller the Herfindahl index, the

A) less the degree of import competition in an industry.
B) greater the degree of import competition in an industry.
C) greater the degree of market power in an industry.
D) less the degree of market power in an industry.

Herfindahl Index

A measure of market concentration used to determine the level of competition within an industry by summing the squares of the market shares for each firm.

Import Competition

The competitive pressure on domestic companies from foreign products and services entering the domestic market.