Asked by Milano Irvin on Jul 08, 2024
Verified
Which statement is false?
A) Cigarettes,motor vehicles,and pipelines are industries with high concentration ratios.
B) Oligopolized industries have higher concentration ratios than monopolistic competitors.
C) The Electric Machinery Conspiracy case involved covert collusion.
D) None of these statements are false.
Concentration Ratios
Measures that indicate the extent to which a small number of firms occupy a large market share within an industry.
Covert Collusion
Secret or concealed agreements between firms to fix prices, limit production, or divide markets, in order to increase profits illegally.
- Determine what constitutes legal versus illegal competition in diverse market structures.
Verified Answer
SE
Samantha EsquivelJul 12, 2024
Final Answer :
D
Explanation :
All the statements provided are true. High concentration ratios are characteristic of industries with few dominant firms, such as cigarettes, motor vehicles, and pipelines, indicating oligopolies. Oligopolized industries indeed have higher concentration ratios compared to those with monopolistic competition, reflecting less competition and more market power concentrated in fewer firms. The Electric Machinery Conspiracy case is a historical example of covert collusion among companies, further illustrating practices within oligopolized markets.
Learning Objectives
- Determine what constitutes legal versus illegal competition in diverse market structures.
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