The Percentage of All Sales Contributed by the Leading Four

question 65

Multiple Choice

The percentage of all sales contributed by the leading four or leading eight firms in an industry is known as

• A) a horizontal merger.
• B) a vertical merger.
• C) economies to scale.
• D) the concentration ratio.

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Definitions:

Belief Preservation

The tendency for people to hold onto their beliefs even when faced with contrary evidence, also known as belief perseverance.

Fundamental Attribution Error

The tendency to underestimate the importance of situational influences and to overestimate personal, dispositional factors as causes of behavior.

Motivational Bias

A cognitive bias that affects the direction of people's behavior by their underlying motives, desires, or needs.

Focus-of-Attention Bias

The tendency to prioritize and remember information that is the focus of one's attention, often at the expense of other information.