An industry with a high four-firm concentration ratio may have little monopoly power if
A)its production is geographically concentrated.
B)its barriers to entry are low.
C)its barriers to entry are high.
D)there are no international producers of the product.
E)there are no close substitutes for its product.

Question

Quizplus · Accepted Answer

A high four-firm concentration ratio indicates that there are few dominant firms in the industry. However, if there are low barriers to entry, it means that new firms can easily enter and compete with the existing firms. As a result, the dominant firms may not have significant market power, and the industry may not have a monopoly or oligopoly structure despite the high concentration ratio.

An Industry with a High Four-Firm Concentration Ratio May Have