Two Shortcomings of Using Concentration Ratios Are: (1)____________;and (2)_________

question 32

Short Answer

Two shortcomings of using concentration ratios are: (1)____________;and (2)_________.

---

Definitions:

Unit Costs

The price a business incurs for the production, storage, and distribution of a single unit of a certain product or service.

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale regarding costs per unit of output.

Diseconomies of Scale

The condition when a company grows so large that the costs per unit increase, causing a decrease in efficiency.

Coordinating

The organization and alignment of activities, processes, or efforts to ensure efficient and effective achievement of goals or outcomes.