The census data sometimes _______ the degree to which a few firms dominate the market, for example, the _______ industry, in which the industries are defined too ________ .
A) overstate; sporting goods; narrowly
B) understate; sporting goods; broadly
C) overstate; motor vehicles; broadly
D) None of the above are true.

Question

Quizplus · Accepted Answer

The correct answer is B) understate; sporting goods; broadly. This is because when industries are defined too broadly in census data, it can make it seem like the market is more competitive than it actually is, thus understating the dominance of a few firms.

The Census Data Sometimes _______ the Degree to Which a Few