One measure of the extent of competition in an industry is the concentration ratio. What level of concentration indicatesthat an industry is an oligopoly?Most economists believe that a four-firm concentration ratio ofoligopoly. (Enter your response as an integer.)thanpercent indicates that an industry is anIs the concentration ratio an accurate measure of the extent of competition?The four-firm concentration ratioOA. is flawed in that it includes sales in the U.S. by foreign firms.B. is flawed in that it includes competition between industries.C. is accurate because it is based on national and global competition.D. is accurate because it is based on estimates from the U.S. Census Bureau.OE. is flawed in that it is calculated for the nation market even though competition in some industries is local.

Most economics believe that a four-firm concentration ratio of greater than 60 percent indicates…

Answered: One measure of the extent of…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 21E

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