A low concentration ratio means that
A) there is a low probability of entering the industry.
B) there is a low probability of success in the industry.
C) each firm accounts for a small market share of the industry.
D) each firm accounts for a large market share of the industry.

Question

Quizplus · Accepted Answer

A low concentration ratio indicates that each firm in the industry has a small market share, which means that there is no dominant player in the market. This could result in greater competition and less market power for individual firms. A low concentration ratio does not necessarily indicate a low probability of entering or succeeding in the industry since new entrants could potentially gain a small market share.

A Low Concentration Ratio Means That