Which of the following industries has the highest concentration ratio?
A)dresses
B)apples
C)books
D)cigarettes

Question

Quizplus · Accepted Answer

The concentration ratio measures the share of the total market accounted for by the largest firms in the industry. The cigarette industry has a very high concentration ratio, with a few large firms such as Philip Morris International and British American Tobacco dominating the market. This is due to high barriers to entry such as government regulations, high brand loyalty, and the cost of establishing a distribution network. As a result, the industry has experienced little competition, allowing the dominant firms to maintain their market share.

Which of the Following Industries Has the Highest Concentration Ratio