At Certain Times of the Year, Many Retail Companies Experience

question 81

Multiple Choice

At certain times of the year, many retail companies experience a rapid increase in inventory as they prepare for a period of high sales. All other things equal, this would cause:

• A) both the quality of income ratio and the capital acquisitions ratio to fall.
• B) the quality of income ratio to fall while the capital acquisitions ratio would remain the same.
• C) the quality of income ratio to rise while the capital acquisitions ratio would remain the same.
• D) both the quality of income ratio and the capital acquisitions ratio to rise.

---

Definitions:

Interindustry Competition

Competition among firms that operate in different industries but compete for the same set of customers or inputs.

Oligopolistic Producers

Firms within a market structure where a small number of companies have the majority of market share and thus can significantly influence price and production levels.

Purely Competitive

Describes a market structure where many sellers offer identical products, and no single seller can influence the market price.

Concentration Ratio

A measure used in economics to assess the degree of market concentration by summing the market shares of the top firms in the industry.