A concentration ratio is used to
A) determine whether a market structure is oligopoly.
B) determine the importance of labor in the production process.
C) determine the degree of homogeneity in the market.
D) see if a firm qualifies for federal assistance.

Question

Quizplus · Accepted Answer

A concentration ratio is used to determine the extent to which a market is dominated by a few firms. It is commonly used to identify whether a market structure is an oligopoly, which is characterized by a small number of firms with significant market power.

A Concentration Ratio Is Used to