-If the four-firm concentration ratio for the market for disposable nappies is 73 per cent, then this industry is best characterised as
A) a monopoly.
B) monopolistic competition.
C) perfect competition.
D) an oligopoly.
E) either a monopoly or monopolistic competition.

Question

-If the four-firm concentration ratio for the market for disposable nappies is 73 per cent, then this industry is best characterised as
A) a monopoly. 
B) monopolistic competition. 
C) perfect competition. 
D) an oligopoly. 
E) either a monopoly or monopolistic competition.

Quizplus · Accepted Answer

The four-firm concentration ratio of 73 percent indicates that the largest four firms in the market control 73 percent of the market share, suggesting a high level of market concentration typical of an oligopoly.

-If the Four-Firm Concentration Ratio for the Market for Disposable