Many studies show that price and concentration ratios are
A) not related
B) inversely related
C) positively related
D) constant
E) both higher in perfectly competitive markets

Question

Quizplus · Accepted Answer

Price and concentration ratios are positively related because in markets with higher concentration ratios, fewer firms control a larger portion of the market, often leading to higher prices due to reduced competition.

Many Studies Show That Price and Concentration Ratios Are