A concentration ratio is used to measure:
A) efficiency.
B) diseconomies of scale.
C) marginal cost.
D) market dominance.

Question

Quizplus · Accepted Answer

A concentration ratio is a measure of market dominance. It measures the percentage of market share held by the largest firms in the industry. A higher concentration ratio indicates a more concentrated market and greater market power of the largest firms, which can be an indication of monopoly power.

A Concentration Ratio Is Used to Measure