Which of the Following Is Not a Shortcoming of the Concentration

question 3

Multiple Choice

Which of the following is not a shortcoming of the concentration ratio as a measure of the extent of competition in an industry?

• A)Concentration ratios do not include sales in the United States by foreign firms.
• B)Concentration ratios are calculated for the national market, even though the competition in some industries is mainly local.
• C)Concentration ratios assign weights to only the four largest firms in an industry.
• D)Concentration ratios do not address the fact that competition sometimes exists between firms in different industries.

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Definitions:

Magnitude

The size, extent, or importance of something, often used in scientific contexts to measure quantities or effects.

Contribution

The act of giving or adding to something with the purpose of improvement or making a difference.

Commitment

A pledge or binding agreement to do something or remain loyal to a cause, person, or institution.

Intended Target

The specific group, population, or individual that a particular action, message, or strategy is aimed at.