The concentration ratio provides a measure of the extent to which an industry
A)produces a useful product.
B)is dominated by a small number of firms.
C)is earning economic profits.
D)is earning accounting profits.

Question

Quizplus · Accepted Answer

The concentration ratio measures the market share of the largest firms in an industry, indicating the extent to which the industry is dominated by a few firms.

The Concentration Ratio Provides a Measure of the Extent to Which