In a certain industry, two large producers have just merged to form a much larger company.What indicator is most likely to reflect this change?
A)the unemployment rate
B)the balance of trade deficit
C)the labor force participation rate
D)the occupational prestige scores
E)the four-firm concentration ratio

Question

Quizplus · Accepted Answer

The four-firm concentration ratio is a measure of market competition that reflects the percentage of total industry output produced by the four largest firms in the industry. With the merger of two large producers, the concentration ratio will increase, indicating a decrease in competition and an increase in market power for the new larger company. Therefore, this indicator is most likely to reflect the change of the merger.

In a Certain Industry, Two Large Producers Have Just Merged