One of the reasons that concentration ratios are NOT a perfect measure of competitiveness is that they
A) do not measure how high the industry's prices are.
B) cannot be measured.
C) ignore potential competition.
D) tell nothing about how high prices were in the past.

Question

Quizplus · Accepted Answer

Concentration ratios focus on the current market share of the largest firms in an industry, but they do not account for potential competition from new entrants or smaller firms that could impact competitiveness.

One of the Reasons That Concentration Ratios Are NOT a Perfect