High concentration measures will understate the extent of competition in a market if
A) the true geographical scope of the market is global rather than national.
B) entry into the industry is easy.
C) the geographical scope of the market is regional rather than national.
D) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

High concentration measures will understate competition if the market is broader (global) than measured (national) or if entry is easy, allowing new competitors to quickly enter the market.

High Concentration Measures Will Understate the Extent of Competition in a Market