The Higher the Concentration Ratio, the

question 462

Multiple Choice

The higher the concentration ratio, the

• A)more control an individual firm has to set prices.
• B)more competitive the industry.
• C)less competitive the industry.
• D)Both a and c are correct.

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Definitions:

Order Processing

The sequence of steps involved in receiving and fulfilling customer orders for products or services.

Trade Sales Promotion

A promotion that encourages resellers to purchase and aggressively sell a manufacturer’s products by offering incentives like sales contests, displays, special purchase prices, and free merchandise.

Free Merchandise

Products or goods given away at no cost to promote a brand, product, or service.

Premiums

Extra payments required for insurance coverage or additional costs added to the usual price of services or goods, often in exchange for higher quality or added benefits.