On Which of the Following Web Sites Should You Question

question 73

Multiple Choice

On which of the following Web sites should you question the accuracy of the information provided?

• A) The Internal Revenue Service's web site lists current tax rates and rules used for tax planning
• B) The Securities and Exchange Commission's web site explains new regulations for stockbrokers
• C) A major bank's web site lists new retirement plans rules used for retirement plans
• D) A free chat room lists recommended stocks for you to buy

---

Definitions:

Four-Firm Concentration Ratio

A measure of market structure that indicates the combined market share of the four largest firms in an industry, used to assess the level of competition.

Market Power

The ability of a firm or group of firms to manipulate prices or output in a market.

Excess Capacity

The situation where a firm or an economy is producing less than its potential output, often indicating inefficiencies or a lack of demand.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.