The Ranking of Industries by the Four-Firm Concentration Ratio Usually,but

question 101

Multiple Choice

The ranking of industries by the four-firm concentration ratio usually,but not always,reveals the same pattern as ranking by HHI.When a discrepancy is found it is usually due to the following:

• A) The four-firm concentration index contains data on only the largest four firms, while the HHI is based on data for all firms in the industry.
• B) The HHI is based on squared market shares, while the four-firm concentration ratio is not.
• C) The four-firm concentration index contains data on only the largest four firms, while the HHI is based on data for all firms in the industry and the HHI is based on squared market shares, while the four-firm concentration ratio is not.
• D) The two indices are designed to measure two different attributes of markets.

Understand the management process of planning, organizing, leading, and controlling and its reliance on information.

Grasp the distinctions between problem solvers, avoiders, and seekers in managerial contexts.

Comprehend the differences between systematic and intuitive thinking in problem-solving.

Understand the concepts of performance deficiency and opportunity in organizational performance management.

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Definitions:

Slippery Slope

A logical fallacy or argument that suggests a small action will lead to a chain of events resulting in a significant and often negative outcome.

Grief

The deep sorrow that people feel at the death of another. Grief is personal and unpredictable.

Odd Actions

Behaviors or actions that deviate from what is typically expected or considered normal in a given context.

Less Familiar

Referring to something or someone that is not well known or not often encountered, leading to a lack of knowledge or comfort.