If the Four-Firm Concentration Ratio in an Industry Increases, the Industry

question 25

Multiple Choice

If the four-firm concentration ratio in an industry increases, the industry

• A)must have become more competitive.
• B)must have become a monopoly.
• C)must have become less competitive, although not necessarily a monopoly.
• D)may or may not have become less competitive.

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Definitions:

Unit of Capital

The smallest divisible amount of capital that can be invested in or allocated to a project or investment.

Stamping Press

A machine used in manufacturing to shape or cut materials by deforming them with a die and high pressure.

Production Costs

Represents the total expenses incurred in the manufacturing of a product, including materials, labor, and overhead.

Chrysler Belvedere

A line of American automobiles produced by Chrysler from the 1950s to the 1970s, known for its stylish design and spacious interiors.