Which of the Following Statements Is True About Concentrated Industries

question 50

Multiple Choice

Which of the following statements is true about concentrated industries?

• A)These industries have few competitors and rivalry is less intense.
• B)Smaller competitors usually respond aggressively to actions taken by large firms.
• C)Few large competitors are aware of each other's presence and therefore more likely to create conflict.
• D)If firms are approximately the same size, they tend to be able to respond, or retaliate, strongly to moves by rival firms.

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value as the asset is used.

Capital Equipment Purchases

Capital equipment purchases involve the acquisition of physical assets like machinery, vehicles, or equipment used in the production process or in the administration of a business.

Credit Sales

Sales in which the payment is deferred, allowing the buyer to purchase goods or services on account and pay at a later date.

Current Year

Refers to the present calendar or fiscal year in which a business or entity operates.