A low concentration ratio means that: A. There is a low probability of entering the industry...
A low concentration ratio means that:
A. There is a low probability of entering the industry
B. Each firm accounts for a small market share of the industry
C. Each firm accounts for a large market share of the industry
D. There is a low probability of success in the industry
Homework Answers
Firstly let us get the meaning that what is concentration ratio .
Concentration ratio if we talk in terms of Economics is the ratio that indicates the total market share of the firms in an industry .
If there is a low concentration ratio it means then there are lot of firms in the market and more ompetition among then.
But opposite to it if there is a high concentration ,it means the the firms are moving towards oligopoly and Monopoly.
If competition is very low it means that each firm accounts to have a small market share and more competition .
Option B is true
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