The Higher the Concentration Ratio, the

question 462

Multiple Choice

The higher the concentration ratio, the

• A)more control an individual firm has to set prices.
• B)more competitive the industry.
• C)less competitive the industry.
• D)Both a and c are correct.

---

Definitions:

Total Output

Total output refers to the total quantity of goods and services produced within an economy at a given time period, reflecting the aggregate production level.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors.

International Trade

The movement of goods and services across national boundaries or territories for trade purposes.

Heckscher-Ohlin Model

An economic theory that proposes that countries will export goods that make intensive use of the factors of production that they have in abundance.