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:

Efficient

Efficient describes achieving maximum productivity with minimum wasted effort or expense, often relating to the optimal use of resources to obtain a desired outcome.

Bureaucratic Organization

A structured administrative system governing any large institution, characterized by fixed rules, a hierarchy of authority, and a detailed division of labor.

Bouncers

Security personnel employed at venues like bars, nightclubs, or concerts to ensure safety, enforce rules, and manage entry.

Specialized Task

A job or duty that requires specific skills or expertise, usually assigned to someone proficient in that area.