Regarding industry concentration;
A)A high Concentration Ratio indicates an efficient industry, which economists prefer.
B)A very high Concentration Ratio means that small companies cannot survive in this industry. .
C)A high Concentration Ratio indicates an inefficient industry
D)A very high Concentration Ratio would tend to indicate a mature industry exhibiting oligopolistic traits.

Question

Quizplus · Accepted Answer

A very high Concentration Ratio tends to indicate a mature industry exhibiting oligopolistic traits, where a small number of dominant firms have significant market power and can set prices. This is often seen in industries with high barriers to entry and where economies of scale are important. In such industries, it can be difficult for small companies to survive and compete effectively. However, this does not necessarily mean that the industry is inefficient.

Regarding Industry Concentration;