All of the Following Are Considered to Be Problems Associated

question 41

Multiple Choice

All of the following are considered to be problems associated with the use of concentration ratios to measure market power except:

• A)the market definitions used in their construction may be arbitrary.
• B)two different markets with the same concentration ratio may have very different distributions of market share among firms used to calculate the concentration ratio.
• C)consideration of exports and imports generally causes concentration ratios to be overstated.
• D)concentration ratios are often based on national statistics and may not reflect substantial concentration in a market at a more localized level.

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Definitions:

Oil Wells

Structures drilled into the earth for the purpose of extracting petroleum and other hydrocarbons.

Appraised Fair Value

The estimated market value of an asset based on the judgment of a qualified appraiser at a specific time.

Cost

The value of economic resources used or the amount of expenditure incurred to acquire or produce a good or service.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by subtracting any associated depreciation or amortization from its cost.