Tha use of cannabis was legalized in Canada in 2017. The cannabis sector (Industry X) and the production of fertilizers used in growing cannabis (Industry Y) both have four-firm concentration ratios of 82 percent, but the Herfindahl index for X is 4,056, while that for Y is 3,975. These data suggest Multiple Choice   both industries are experiencing X-inefficiency.   greater market power in Y than in X.   greater market power in X than in Y.   that price competition is stronger in X than in Y.   both industries are monopolistically competitive.

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