The primary shortcoming of industry concentration ratios is the frequent inability of antitrust regulators to define accurately what constitutes an industry, the failure to reflect ease of entry or exit, foreign competition, and the distribution of firm size.

Question

Quizplus · Accepted Answer

Industry concentration ratios have limitations as they do not accurately define the industry, do not consider the ease of entry or exit, foreign competition and distribution of firm size.

The Primary Shortcoming of Industry Concentration Ratios Is the Frequent