When Multiple Criteria Are Combined Formally

question 11

Multiple Choice

When multiple criteria are combined formally:

• A) Weights are not assigned to each criterion to reflect its relative importance.
• B) Criteria and associated operational measures are made explicit.
• C) A qualitative index of overall performance is produced.
• D) It is easy to make performance comparisons among channel members.
• E) It increases the complexity of the evaluation.

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Definitions:

Concentration Ratio

is a measure used to determine the market share of the largest firms within an industry, indicating the degree of market control and competition.

Herfindahl Index

An index reflecting the scale of companies compared to the entire sector and a sign of the level of competitive activity present.

Pure Monopolist

A market structure where a single firm is the sole producer and seller of a product or service without close substitutes, giving it significant market power.

Market Shares

The percentage of an industry's total sales that is earned by a particular company over a specified time period, indicating the company's size or presence in the market.