QUESTION IMAGE
Question
what does concentration ratio measure?
the degree of price regulation by market firms.
the exclusive dealing agreements between firms.
the pricing power of monopolies over time.
the cost and profit margins of regulated firms.
the share of total industry sales by the largest firms.
question 5
what is cost - plus regulation?
allowing a firm to cover costs and earn normal profit.
limiting exclusive sales agreements between firms.
setting a price that firms cannot exceed.
reducing competition without price agreements.
measuring the concentration of firms in a market.
question 6
what is exclusive dealing?
an agreement to sell only products from one manufacturer.
combining products into a single sale.
a regulation preventing firms from tying sales.
a requirement to sell products at a minimum price.
an acquisition of one firm by another.
- Concentration ratio: It is a measure in economics (Business discipline, Economics sub - field) that calculates the combined market share of the largest firms in an industry. So, it measures the share of total industry sales by the largest firms.
- Cost - plus regulation: In economics (Business discipline, Economics sub - field), cost - plus regulation allows a firm to cover its costs (both explicit and implicit) and earn a normal profit. This is to ensure that the firm has an incentive to operate while also being regulated.
- Exclusive dealing: In business (Business discipline, Economics sub - field, related to antitrust and firm - level agreements), exclusive dealing is an agreement where a firm (usually a retailer) agrees to sell only products from one manufacturer.
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- For the first question: The share of total industry sales by the largest firms.
- For the second question: Allowing a firm to cover costs and earn normal profit.
- For the third question: An agreement to sell only products from one manufacturer.