Other Things Remaining the Same, the Concentration Ratio in an Industry

question 73

Multiple Choice

Other things remaining the same, the concentration ratio in an industry will increase if:

• A) new firms enter the industry.
• B) some firms leave the industry.
• C) the largest firms are broken up into smaller firms.
• D) the industry's output increases.

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Definitions:

Sales Revenues

Sales revenues represent the total amount of money earned by a company from its sales of goods or services before any expenses are deducted.

Plant Equipment

Assets that are durable and used in operations to produce goods and services, typically including machinery, vehicles, and tools.

Earnings Per Share

Earnings per share (EPS) is a financial measure that divides a company's net profit by the number of its outstanding shares of common stock, indicating the company's profitability on a per-share basis.

Accruing Revenue

The process of recognizing revenue that has been earned but not yet received in cash or recorded by the company.