A Low Concentration Ratio Means That

question 114

Multiple Choice

A low concentration ratio means that

• A)there is a low probability of entering the industry.
• B)there is a low probability of success in the industry.
• C)each firm accounts for a small market share of the industry.
• D)each firm accounts for a large market share of the industry.

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Definitions:

Confirmation Error

A bias in decision-making where individuals favor information that confirms their pre-existing beliefs or hypotheses.

Confirmation Error

A cognitive bias that involves favoring information that confirms pre-existing beliefs or values, while disregarding evidence that contradicts them.

Escalating Commitment

The phenomenon where people increase their investment in a decision despite new evidence suggesting that the decision was wrong.

Framing Error

A cognitive bias where information is presented or perceived in such a way that it leads to incorrect conclusions or decisions.