An Industry with a High Four-Firm Concentration Ratio May Have

question 8

Multiple Choice

An industry with a high four-firm concentration ratio may have little monopoly power if

• A)its production is geographically concentrated.
• B)its barriers to entry are low.
• C)its barriers to entry are high.
• D)there are no international producers of the product.
• E)there are no close substitutes for its product.

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Definitions:

Status Quo

The existing state of affairs or current condition, typically used to describe situations before any changes are made.

Fairness

A concept involving impartial and just treatment or behavior without favoritism or discrimination, often considered in ethical, legal, and social contexts.

Behavioral Economics

A branch of economics that examines how psychological, emotional, cognitive, cultural, and social influences impact the economic choices made by individuals and institutions.

Economic Behavior

The study of how individuals, businesses, and governments make choices on allocating resources to satisfy their wants and needs.