If a product,such as cement or bricks,is costly to ship and,therefore,its markets are very localized,the concentration ratio for that industry:
A)must be greater than 50 percent
B)may overstate the level of competition
C)may overstate the degree of concentration
D)will yield an accurate impression of the degree of concentration
E)must be 100 percent

Question

Quizplus · Accepted Answer

The concentration ratio for industries with costly to ship products may overstate the level of competition and the degree of concentration, as markets are localized and competitors may be small and local players.

If a Product,such as Cement or Bricks,is Costly to Ship