As a Measure of Competition in an Industry, Concentration Ratios

question 148

Multiple Choice

As a measure of competition in an industry, concentration ratios have several flaws.One of these flaws is that concentration ratios

• A)assume that all industries have low barriers to entry.
• B)assume that a ratio less than 40 percent means an industry is perfectly competitive.
• C)assume there are only four firms in an industry.
• D)are calculated for the national market, even though competition in some industries is mainly local.

Identify the significance of replenishment lead time and lot size on inventory levels and costs.

Understand the categorization of production materials based on value/cost and criticality.

Acknowledge the strategies to mitigate the hockey stick phenomenon in sales.

Recognize the factors involved in sourcing processes including supplier selection and contract design.

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Definitions:

Problem Solving Style

The method or approach an individual or group uses to find solutions to challenges or obstacles.

Social Traits

Surface-level traits that reflect the way a person appears to others when interacting in social settings.

Measure

A method or tool used to quantitatively or qualitatively assess characteristics, performance, or outcomes.

Individual Differences

Individual differences refer to the variety of distinctions among people in their abilities, preferences, learning styles, and other behavioral characteristics.