Which of the Following Is Not a Shortcoming of the Concentration

question 3

Multiple Choice

Which of the following is not a shortcoming of the concentration ratio as a measure of the extent of competition in an industry?

• A)Concentration ratios do not include sales in the United States by foreign firms.
• B)Concentration ratios are calculated for the national market, even though the competition in some industries is mainly local.
• C)Concentration ratios assign weights to only the four largest firms in an industry.
• D)Concentration ratios do not address the fact that competition sometimes exists between firms in different industries.

---

Definitions:

Conviction Stage

is a phase in the sales process where the potential customer develops a strong belief in the value and benefits of the product, leading towards a purchase decision.

Salesperson's Goal

The primary objective of a salesperson, which typically involves meeting or exceeding specific sales targets or quotas within a set timeframe.

Buying Decision

The process by which a consumer decides whether to purchase a product or service, influenced by various factors.

Sales Call

A phone call or visit made by a sales representative to a potential or existing customer for the purpose of selling a product or service.