A Four-Firm Concentration Ratio of Less Than 60 Percent Indicates

question 57

Multiple Choice

A four-firm concentration ratio of less than 60 percent indicates

• A)a monopoly.
• B)a market that is dominated by a few firms.
• C)a competitive market.
• D)an oligopoly.
• E)an absence of competition.

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Definitions:

Dividends

Dividends are a portion of a company's earnings that are paid to shareholders, typically on a quarterly basis, as a reward for investing in the company's equity.

Agency Relationships

Refers to the connection between principals (such as shareholders) and agents (such as company executives), where agents are expected to act in the best interests of principals.

Owner/Managers

Individuals who both own and actively manage a company, blending ownership and operational responsibilities.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly rights to dividends and voting in company matters.