Which of the following statements is true?
A)Concentration ratios take into account competition from substitute goods.
B)The four-firm concentration ratio is likely to be larger than the eight-firm concentration ratio.
C)There are assumed to be insignificant barriers to entry in the theory of oligopoly.
D)A designer label on a pair of jeans is a way of differentiating one seller's jeans from another seller's jeans.

Question

Quizplus · Accepted Answer

A designer label on a pair of jeans is a form of product differentiation, which is a common strategy in oligopolistic markets where firms attempt to distinguish their products from those of their competitors. Concentration ratios do not take into account competition from substitute goods, and the relationship between the four-firm and eight-firm concentration ratios can vary depending on the market structure. Additionally, assumptions about barriers to entry in oligopoly are typically based on the specific characteristics of the market being analyzed.

Which of the Following Statements Is True