A Concentration Ratio Measures

question 50

Multiple Choice

A concentration ratio measures

• A) the average size of the firms in the industry.
• B) the sales of the three largest firms in the industry minus the costs of these three largest firms in the industry.
• C) the share of industry sales accounted for by the largest firms in the industry.
• D) the excess capacity found in a particular oligopolistic industry.

Understand how changes in productivity affect resource demand and the factors contributing to productivity changes.

Examine the dynamics of "winner-take-all" markets and their impact on income distribution.

Investigate the future trends in employment, focusing on occupations likely to decline or grow due to technological changes and economic principles.

Understand the inverted-U theory of R&D in terms of its relationship with industry concentration.

---

Definitions:

International Monetary Fund

An international organization that aims to promote global economic growth and financial stability, encouraging international trade and reducing poverty.

Federal Reserve Wire Network

A real-time payment and settlement system operated by the United States Federal Reserve, facilitating the movement of funds between financial institutions.

Money Center Banks

Large financial institutions that offer a wide array of services and operate at national or international levels, typically located in major financial centers.

Conventional Banks

Financial institutions that offer a wide range of banking services without following any specific religious or ethical restrictions.