Suppose the 2-Firm Concentration Ratio (Measuring Output)in a Canadian Manufacturing

question 76

Multiple Choice

Suppose the 2-firm concentration ratio (measuring output) in a Canadian manufacturing industry is over 90%.Why might the market power of these 2 firms be less than the concentration ratio suggests?

• A)The product is purely domestic and there is no international trade.
• B)A high concentration ratio usually indicates low degrees of market power.
• C)The product is traded internationally and the two Canadian firms compete with many global rivals.
• D)The relevant market is regional and so the concentration ratio is not relevant.
• E)A 2-firm concentration ratio does not provide enough information.

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Definitions:

Internal Changes

Adjustments or transformations within an organization that impact its processes, structure, or culture.

Organizational Learning

The process through which an organization improves its abilities and effectiveness through the acquisition, development, and transfer of knowledge within the organization.

Downsizing

The process of reducing the number of employees within an organization, often to cut costs or improve efficiency.

Transitional Change

A period or process of moving from one state, stage, or condition to another, often involving significant shifts in operations or strategy.