Asked by
Mikayla Edwards
on Nov 26, 2024Verified
An industry having a four-firm concentration ratio of 85 percent
A) approximates pure competition.
B) is monopolistically competitive.
C) is a pure monopoly.
D) is an oligopoly.
Four-Firm Concentration Ratio
A metric assessing the concentration of market power by adding the market shares of the four largest firms in an industry.
Pure Competition
A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and easy entry and exit, leading to price-taking behavior.
Pure Monopoly
A market structure where a single seller exclusively provides a product or service with no close substitutes, controlling the entire market supply.
- Acquire knowledge regarding the concept and features of oligopoly.
Verified Answer
IC
Learning Objectives
- Acquire knowledge regarding the concept and features of oligopoly.