Suppose the 2- Firm Concentration Ratio (Measuring Output) in a Canadian

question 96

Multiple Choice

Suppose the 2- firm concentration ratio (measuring output) in a Canadian manufacturing industry is over 90 percent. Why might the market power of these 2 firms be less than the concentration ratio suggests?

• A) The product is traded internationally and the two Canadian firms compete with many global rivals.
• B) A 2- firm concentration ratio does not provide enough information.
• C) A high concentration ratio usually indicates low degrees of market power.
• D) The product is purely domestic and there is no international trade.
• E) The relevant market is regional and so the concentration ratio is not relevant.

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Definitions:

Stereocilia

Hairlike projections on the surface of some cells, such as those in the inner ear, which play a role in the detection of sound and the balance system.

Epididymis

A long, coiled tube that stores sperm and transports it from the testes.

Corpora Cavernosa

Spongy tissues running along the length of the penis that fill with blood during erection, contributing to its rigidity.

Membranous Urethra

The section of the urethra that passes through the urogenital diaphragm, primarily in males.