A Concentration Ratio Measures

question 50

Multiple Choice

A concentration ratio measures

• A) the average size of the firms in the industry.
• B) the sales of the three largest firms in the industry minus the costs of these three largest firms in the industry.
• C) the share of industry sales accounted for by the largest firms in the industry.
• D) the excess capacity found in a particular oligopolistic industry.

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Definitions:

Focused Strategy

A business approach that targets a particular market niche or demographic with tailored products or services.

Customer Niche

A focused, targetable portion of a market by which specific products or services are marketed to meet the unique demands of its audience.

Broader Market

Refers to a wide and diverse range of buyers and sellers in an extensive market beyond niche or specific industry segments.

Dollar General

A chain of variety stores in the United States known for selling items at low costs, often in rural and suburban areas.