Concentration increases in an industry
A)if the larger firms gain control of important resources, squeezing out smaller firms.
B)if some firms become technologically superior over time.
C)if innovation increases plant size of some firms and lowers their cost.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above options are correct. Concentration can increase in an industry if larger firms gain control of important resources, which can squeeze out smaller firms. Technological superiority of some firms over time can also lead to concentration. Additionally, innovation and increasing plant size can lower cost and lead to concentration.

Concentration Increases in an Industry