When the four-firm concentration ratio in a market is high: A. the four biggest
ID: 1131505 • Letter: W
Question
When the four-firm concentration ratio in a market is high: A. the four biggest firms are National Monopolists. B. economies of scale are likely to be significant C. Each of the four largest firms produces a highly differentiated product. D. Only the four largest firms produces a highly differentiated product. E. None of the above.When the four-firm concentration ratio in a market is high: A. the four biggest firms are National Monopolists. B. economies of scale are likely to be significant C. Each of the four largest firms produces a highly differentiated product. D. Only the four largest firms produces a highly differentiated product. E. None of the above.
When the four-firm concentration ratio in a market is high: A. the four biggest firms are National Monopolists. B. economies of scale are likely to be significant C. Each of the four largest firms produces a highly differentiated product. D. Only the four largest firms produces a highly differentiated product. E. None of the above.
Explanation / Answer
Answer:-
When the four-firm concentration ratio in a market is high:
B. economies of scale are likely to be significant
Reason:- Economies of scale will be significant for the industries having greater concentration ratio.