A narrowly defined market will tend to make concentration appear _______, while a broadly defined market will tend to make it appear _______.
A) concerning; less concerning
B) higher; smaller
C) less concerning; concerning
D) smaller; higher

Question

Quizplus · Accepted Answer

A narrowly defined market will tend to make concentration appear higher because it focuses on a smaller number of firms, making any single firm's market share appear larger. Conversely, a broadly defined market includes more firms, which tends to dilute individual firms' market shares, making concentration appear smaller.

A Narrowly Defined Market Will Tend to Make Concentration Appear