Highly concentrated industries allow only a few large firms to reap profits at the expense of consumers.

Question

Quizplus · Accepted Answer

In highly concentrated industries, there are only a few large firms that have significant market power. This allows them to control prices and restrict output, resulting in higher profits for the firms and higher prices for consumers. This is often at the expense of smaller competitors who struggle to enter the market and compete with the dominant firms.

Highly Concentrated Industries Allow Only a Few Large Firms to Reap