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.

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Definitions:

Contract Violation

A failure to fulfill the terms of an agreement between parties.

Mediation

A conflict resolution process involving a neutral third party who assists disputing parties in finding a mutually acceptable agreement.

Work Stoppages

Events where workers cease operations, often as a form of protest or to negotiate better working conditions or wages.

Neutral Third Party

An unbiased individual or group not directly involved in a dispute or negotiation, brought in to facilitate a resolution or agreement.