A concentration ratio is used to
A) determine whether a market structure is oligopoly.
B) determine the price level relative to firms' marginal costs.
C) determine the degree of homogeneity in the market.
D) determine the absolute size of a market.

Question

Quizplus · Accepted Answer

A concentration ratio measures the percentage of market share held by the largest firms in a market. If a small number of firms hold a large percentage of the market share, it suggests an oligopoly market structure.

A Concentration Ratio Is Used to