When the Four-Firm Concentration Ratio Is Less Than 40 Percent

question 7

Multiple Choice

When the four-firm concentration ratio is less than 40 percent, we can conclude that:

• A) the four dominant firms in the industry enjoy a high degree of market power.
• B) the industry is a tight oligopoly.
• C) the market shares of each firm in the industry are highly unequal.
• D) the industry is monopolistically competitive.
• E) the industry is competitive.

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