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:

Inwards Inspection

Inwards Inspection refers to the process of checking, validating, and approving materials or products received from suppliers before they are used in production or put to stock.

Rental

The payment, usually monthly, owed by a tenant to a landlord for the use of real estate, equipment, or other properties.

Insurance

A practice or agreement whereby a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.

Economic Order Quantity

An inventory management formula used to determine the optimal order quantity that minimizes the total costs related to ordering, receiving, and holding inventory.