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A researcher has data on accounting profits, HHI, and different conditions of entry for different Canadian industries for the year 2009. Using this cross sectional data set, the researcher has estimated the coefficients of a model in which accounting profit in an industry is a function of concentration and conditions of entry. He concludes from his analysis that increased concentration has little effect on profits. Should we accept his conclusion? Why or why not?

Macroeconomics, Economics

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