Which Statement Is True

question 22

Multiple Choice

Which statement is true?

• A)Collusion is most likely in industries with high concentration ratios.
• B)Collusion is most likely in industries with low concentration ratios.
• C)There is no relationship between the likelihood of collusion and the size of the concentration ratio.

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Definitions:

Responsibility Center

A segment or area within an organization whose managers are accountable for specified sets of activities and performance.

Desired Return

The expected gain or profit specified by an investor or business from an investment or project.

Operating Data

Information related to the day-to-day operations of a company, such as sales revenue, production costs, and labor expenses.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used in breakeven analysis and to assess operational efficiency.