If entry into an industry was very easy, the four firm concentration ratio would not be a very useful index of the competitiveness in that industry

Question

Quizplus · Accepted Answer

If entry into an industry is very easy, new firms can quickly enter and exit the market, which can rapidly change the market share distribution. This makes the four-firm concentration ratio less reliable as a measure of competitiveness, as it may not accurately reflect the dynamic nature of the industry.

If Entry into an Industry Was Very Easy, the Four