Which of the Following Would Not Lead to Higher Concentration

question 108

Multiple Choice

Which of the following would not lead to higher concentration in an industry?

• A)A large number of firms have entered the market.
• B)Some firms have become technologically superior.
• C)Larger firms gain control of important resources, squeezing out smaller firms.
• D)Innovation increases plant size of some firms and lowered their average costs.

Understand the impact of media ownership and media concentration on content and diversity.

Know the historical milestones in media development and their societal impact.

Identify the functions of the mass media as per different theoretical perspectives.

Understand the concept and consequences of media imperialism.

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a utility to consumers equal to the cost of producing it.

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost.

Monopolistic Producer

A single producer that has control over the market for a product or service, often characterized by a lack of close substitutes.

Competitive Firm

A company that operates in a market with many competitors, where prices are determined by supply and demand.