Economists are aware and note that the concentration ratio of the U.S. automobile industry may be misleading in representing the industry's market power because it does not include the
A) market sales of the four biggest car companies
B) scooter market
C) the increased use of public transportation
D) bicycle market
E) imported car market

Question

Quizplus · Accepted Answer

The concentration ratio, which measures the market share of the largest firms in an industry, may not accurately reflect the U.S. automobile industry's market power if it excludes the impact of imported cars. Imported cars significantly contribute to the industry's competitive landscape, affecting market dynamics and competition.

Economists Are Aware and Note That the Concentration Ratio of the U.S