Suppose an Industry Is Made Up of Four Firms, All

question 121

Multiple Choice

Suppose an industry is made up of four firms, all with equal sales. The four-firm concentration ratio of that industry is

• A)0.125.
• B)0.50.
• C)1.00.
• D)This cannot be determined without more information.

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Definitions:

Discounted Services

Services offered at reduced prices, often to attract customers or as a benefit for certain groups, such as employees or members.

Blue Cross / Blue Shield

A federation of health insurance organizations specializing in providing healthcare coverage to millions of people in the United States.

Preferred Provider Organizations

Health insurance plans that offer a network of healthcare providers who provide services to subscribers at a lower cost compared to out-of-network providers.

PPO Service Area

The geographic region or locations where a Preferred Provider Organization (PPO) health insurance plan offers coverage through its network of preferred providers.