The measure of market power that focuses on the share of the market controlled by the X largest firms in the market is known as:
A)the Lerner Index.
B)the Herfindahl-Hirschman Index.
C)the Minimum-Efficient Scale Index.
D)a concentration ratio.

Question

Quizplus · Accepted Answer

A concentration ratio measures the market share controlled by the top firms in the market, indicating the level of market concentration and potential market power.

The Measure of Market Power That Focuses on the Share