As the definition of products narrows (i.e., becomes more specific), the concentration ratio
A) is not valid.
B) tends to decrease.
C) tends to increase.
D) does not change in any predictable manner.

Question

Quizplus · Accepted Answer

When the definition of products becomes more specific, the market is viewed as being more narrowly defined, often leading to a higher concentration ratio. This is because fewer firms typically compete in more narrowly defined markets, making the market share of leading firms larger in proportion.

As the Definition of Products Narrows (I