If the four-firm concentration ratio equals 0.1 percent for the Mexican tomato industry,then this industry is best characterized as
A) a monopoly.
B) monopolistic competition.
C) an oligopoly.
D) perfect competition.
E) either a monopoly or monopolistic competition.

Question

Quizplus · Accepted Answer

A four-firm concentration ratio of 0.1 percent indicates a highly competitive market with many firms having very small market shares, which is characteristic of perfect competition.

If the Four-Firm Concentration Ratio Equals 0