The Value of the Four-Firm Concentration Ratio That Many Economists

question 204

Multiple Choice

The value of the four-firm concentration ratio that many economists consider indicative of the existence of an oligopoly in a particular industry is

• A)anything greater than 10 percent.
• B)anything greater than 20 percent.
• C)anything greater than 30 percent.
• D)anything greater than 40 percent.

---

Definitions:

FIFO Approach

A method of inventory valuation where the first items put into inventory are the first ones to be recorded as sold.

Sum-Of-The-Years'-Digits Method

A depreciation technique that results in a more accelerated write-off of an asset over its useful life, by applying a decreasing fraction to its depreciable cost.

Repairs

Expenditures that restore an asset to its previous operating condition or maintain the asset in its current condition, without significantly enhancing its value.

Maintenance Costs

The expenses incurred to keep an asset in usable condition or restore it to its original condition without enhancing its value.