A broader definition of a market implies
A)a lower market concentration.
B)a higher Herfindahl-Hirschman index.
C)a higher price-cost margin.
D)a higher possibility of mergers.
E)a higher possibility of price fixing.

Question

Quizplus · Accepted Answer

A broader definition of a market would mean that it encompasses a larger number of firms and products, resulting in a lower market concentration. This is because the market share of each individual firm would be smaller in a broader market.

A Broader Definition of a Market Implies