The relationship between seller concentration and industry profitability is:
A)Strongly positive-increasing concentration is almost always followed by increasing profit margins
B)Mainly negative-as industries become more concentrated,the competition between leading firms for market dominance becomes more aggressive
C)Dependent upon the size of the industry
D)Statistically weak.

Question

Quizplus · Accepted Answer

The relationship between seller concentration and industry profitability is statistically weak because other factors, such as market entry barriers, product differentiation, and market demand, also significantly influence profitability.

The Relationship Between Seller Concentration and Industry Profitability Is