In which type of market structure would you expect the highest concentration ratio?

Question

BlackTom AI · Accepted Answer

In market structure questions, the concentration ratio measures the total market share of the leading firms, giving a sense of how concentrated or competitive the market is.
Option 1: Monopolistic Competition. This structure features many small firms with differentiated products, so no single firm or small group holds a large share. Consequently, the concentration ratio is typically low, making this option a poor fit for the highest possible CR.
Option 2: Monopoly. Here there is a single firm that controls the entire market, effectively capturing nearly 100% of the market share. The concentration ratio would be extremely high, often approaching the full 100%, which aligns with the idea of the highest possible CR.
Option 3: Oligopoly. A few dominant firms share the market, so the concentration ratio is high relative to more competitive structures, but it is not as extreme as a monopoly. The CR can be substantial, yet it does not reach the near-total dominance characteristic of Monopoly.
Option 4: Perfect competition. This structure has a very large number of firms, identical products, and no single firm can influence the market. The concentration ratio is typically very low, reflecting intense competition, which is opposite to the idea of the highest CR.

In which type of market structure would you expect the highest concentration ratio?

查看解析

登录即可查看完整答案

类似问题

Over the past 5 years, 50 new restaurants have opened and 30 have closed in the city of Zuni. Currently there are 110 restaurants operating in the city. Which of the following best represents the market structure, barriers to entry, and economic profits in the long run?

When the CR4 of an industry is equal to 30, it signals that the industry is closer to

A perfectly competitive firm is said to be more efficient than a monopoly firm because

A perfectly competitive firm is said to be more efficient than a monopoly firm because

Which market structure do you think would best describe the market for shoes?

According to the video, which market structure category is the toothbrush market best described as?

According to the video, which market structure category is the car market best described as?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单