Concentration ratios
A) refer to the concentration of customers in a certain area.
B) measure whether the market is dominated by a small number of firms.
C) measure the concentration of a large number of firms in a certain area.
D) have high values for perfect competition.
E) measure how concentrated a firm's sales are among certain types of goods.

Question

Quizplus · Accepted Answer

Concentration ratios measure the extent to which a market is dominated by a small number of firms. They are typically measured by adding the market share percentages of the top few firms in the industry.

Concentration Ratios