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Concentration Ratios May Be Inaccurate Indicators of the Degree of Monopoly

Question 38

Multiple Choice

Concentration ratios may be inaccurate indicators of the degree of monopoly power in an industry because


A) they include interindustry competition.
B) foreign competition is not considered.
C) they are only calculated for local and regional markets.
D) they do not distinguish between normal and economic profit.

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