A Concentration Ratio

question 371

Multiple Choice

A concentration ratio

• A)measures the percentage of total sales of the top firm in the industry.
• B)reflects the level of competition in an industry.
• C)is inversely related to the price charged by the top firm in the industry.
• D)All of the above are correct.

---

Definitions:

Output Price

The price at which a product or service is sold, reflecting the market value of the output.

Demand for Capital

The desire for acquiring physical assets, equipment, or financial assets to expand business operations or investments, influenced by the expected profit and cost of borrowing.

Rental Price

The cost of using or occupying property or equipment for a specified period.

Average Productivity

The output produced per unit of input, such as labor or capital, on average.