Asked by Julian Ortiz on Jul 13, 2024
Verified
The share of ________ by the top firms is known as the concentration ratio.
A) industry output in sales or employment accounted for
B) resources used in production
C) the labor force employed
D) outstanding shares of stock issued
Concentration Ratio
A measure used to indicate the level of competition within an industry by quantifying the market share held by the largest firms.
Industry Output
The total amount of goods or services produced by all firms within a particular industry.
- Understand the role of concentration ratio in measuring market concentration.
Verified Answer
EP
Emily PleimanJul 19, 2024
Final Answer :
A
Explanation :
The concentration ratio is a measure of the total output in an industry by the top firms, typically in terms of sales or employment, indicating how much of the market they control.
Learning Objectives
- Understand the role of concentration ratio in measuring market concentration.