Which of the following industries has the highest concentration ratio?

Question

BlackTom AI · Accepted Answer

The question asks which industry has the highest concentration ratio, and the provided correct answers are Cheese and Households appliances. We will evaluate each option in turn, noting why some are plausible candidates for concentration and why others are not.
Option 1: Dresses. In many markets, the dress industry is fragmented with numerous competing brands and retailers, and no single firm commands a dominant share. Unless the market studied is highly specialized (e.g., a luxury segment dominated by a few brands), dresses typically do not exhibit the highest concentration. This makes this option unlikely to be among the industries with the highest concentration ratio.
Option 2: Cheese. The cheese industry can show high concentration in certain markets or product segments (such as premium cheeses or national markets where a few firms control large shares). If the focus is on typical dairy products and processed cheeses where a handful of firms dominate production and sales, the concentration ratio can be relatively high, supporting this option as one with high concentration.
Option 3: Households appliances. This sector often features significant consolidation, especially for large appliance manufacturers and a few major brands that control a large portion of sales in many countries. Given the tendency toward fewer dominant players in household appliances, this option is a strong candidate for a high concentration ratio.
Option 4: Books. The book industry is generally highly fragmented, with thousands of publishers and retailers, leading to a low concentration ratio in most settings. While there are major publishers, the overall market concentration tends to be relatively low compared to sectors like household appliances or certain dairy products. Therefore, this option is unlikely to have the highest concentration ratio.
In summary, the options that align with having the highest concentration ratio are Cheese and Households appliances, as these sectors often display fewer dominant firms relative to the size of the market, whereas Dresses and Books tend to be more dispersed with many players and lower concentration.

Microeconomics Week 4 Quiz Microeconomics Week 4 Quiz

Which of the following industries has the highest concentration ratio?

View Explanation

Log in for full answers

Similar Questions

8. The Herfindahl index is: A. the sum of the squared percentage market shares of all firms in the industry. B. the sum of the market shares for the top 10 firms in the industry. C. a measure of product differentiation in the market. D. a measure of how easy it is for new firms to enter the market.

A high Four-Firm Concentration Ratio (CR4), such as 80%, indicates:

Which of the following statements is NOT correct?

The Herfindahl index solves which problem with the N-Firm ratio?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler