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Morgen Iverson
on Nov 26, 2024

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A high concentration ratio indicates that

A) the industry is highly profitable.
B) the industry is highly competitive.
C) many firms produce most of the output in an industry.
D) few firms produce most of the output in an industry.

High Concentration Ratio

An economic measurement indicating that a large portion of market share is controlled by a few firms, often pointing to a lack of competition within an industry.

Competitive

A market structure characterized by a large number of firms or sellers where each has a small proportion of market share and there is free entry and exit from the market.

Output

The total quantity of goods or services produced by an individual, system, or entity within a specific period, often used as a measure of productivity or economic activity.

  • Acknowledge the value of concentration ratios for evaluating market structure and competitive intensity.
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Srabasti NandiDec 02, 2024
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