A Concentration Ratio Indicates the

question 76

Multiple Choice

A concentration ratio indicates the

• A)number of firms in an industry.
• B)number of large firms in an industry compared to the number of large firms in another related industry.
• C)percentage of total sales accounted for by the (for example) four largest firms.
• D)percentage of sellers in an industry relative to the number of buyers.
• E)percentage of sellers in an industry protected by barriers to entry relative to the number of sellers that wish to enter.

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Definitions:

Main Effect

The impact of a single independent variable on a dependent variable in an experimental design.

Factor B

In experimental designs, it refers to the second independent variable being studied for its effect on the dependent variable.

Mean Square

A statistical measure calculated by dividing the sum of squares by the degrees of freedom, often used in variance analysis.

Interaction Effect

A phenomenon in statistical analysis indicating that the effect of one variable on a certain outcome depends on the level of another variable.