If the Four-Firm Concentration Ratio Is a Very Small Number

question 328

Multiple Choice

If the four-firm concentration ratio is a very small number, then

• A) there is a high degree of competition in the market.
• B) there is no competition in the market.
• C) the market must be dominated by a few firms.
• D) the market is not perfectly competitive.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value due to use, wear and tear, or obsolescence.

Disposable Income

The net income available to an individual or household for saving or spending after income taxes have been deducted.

C + I

An abbreviation for "Consumption + Investment," which are components used in calculating gross domestic product (GDP) in the expenditure method.

Disposable Income

Money that households can allocate towards savings and spending after income tax charges.