Because of the flaws of the concentration ratio as a measure of the extent of competition in an industry, some economists prefer another measure of competition, the Herfindahl-Hirschman Index.

Question

Quizplus · Accepted Answer

The statement accurately reflects the preference of some economists for the Herfindahl-Hirschman Index as a measure of competition over the concentration ratio.

Because of the Flaws of the Concentration Ratio as a Measure