Which of the Following Represent Important Shortcomings of Using Industry

question 3

Multiple Choice

Which of the following represent important shortcomings of using industry concentration ratios to determine whether the combination of certain firms will result in an increase in market power?

• A) Frequent inability to define what constitutes an industry
• B) Failure to measure ease of entry or exit for other firms
• C) Failure to account for foreign competition
• D) Failure to account properly for the distribution of firms of different sizes
• E) All of the above

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Definitions:

Downturns

Periods or phases characterized by economic decline, reduced activity, or diminished performance.

Distress

A negative emotional state that is a response to stress, characterized by feelings of anxiety, sorrow, or pain.

Approach-avoidance

A psychological conflict that involves being drawn to and simultaneously repelled by the same object, situation, or action.

Avoidance-avoidance

A decision-making process involving a choice between two equally undesirable outcomes or options.