If a product such as cement or bricks is costly to ship and, therefore, markets are very localized, the national concentration ratio for that industry

Question

Quizplus · Accepted Answer

The national concentration ratio may understate the degree of monopoly in industries where products are costly to ship and markets are localized, because even if a few companies dominate the national market, local markets could be monopolized by different firms, leading to a higher degree of monopoly locally than the national ratio suggests.

If a Product Such as Cement or Bricks Is Costly