Suppose That a Particular Industry Has a Four-Firm Concentration Ratio

question 30

Multiple Choice

Suppose that a particular industry has a four-firm concentration ratio of 85 and a Herfindahl index of 3,000. Most likely, this industry would achieve

• A) both productive efficiency and allocative efficiency.
• B) allocative efficiency but not productive efficiency.
• C) neither productive efficiency nor allocative efficiency.
• D) productive efficiency but not allocative efficiency.

---

Definitions:

Endless Chain Referral Method

A marketing strategy where existing customers are encouraged to refer new clients, potentially creating a continuous chain of referrals.

Friends

People known for some time and with whom we share common interests and/or hobbies.

Salespeople

Individuals who sell products or services to customers, focusing on meeting customer needs and closing sales transactions.

Endless Chain

A sales technique where current customers are used to generate leads for future sales by asking for referrals to new prospects.