Which of the following is correct?
A) Monopoly has a four-firm concentration ratio of 100.
B) Perfect competition has a four-firm concentration ratio near zero.
C) Monopolistic competition has a four-firm concentration ratio of more than 40.
D) Both answers A and B are correct.
E) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

The four-firm concentration ratio in a monopoly is 100 because a single firm dominates the entire market. In perfect competition, the market is shared by many firms, making the four-firm concentration ratio near zero. Monopolistic competition can have a wide range of concentration ratios, but not necessarily more than 40, making options A and B correct.

Which of the Following Is Correct