Using the concentration ratio to measure the degree of competition
A) may understate the degree of competition because it ignores imported goods.
B) may overstate the degree of competition because it ignores imported goods.
C) may overstate the degree of competition because inter-industry competition is ignored.
D) may understate the degree of competition because market share changes annually.
A
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The various antitrust laws are written in very specific terms. Thus, there is little or no question as to when a firm has run afoul of one or more of these laws
Indicate whether the statement is true or false
An example of direct stock ownership is when a person
a. pays into a pension fund that buys stocks b. puts money into an insurance company that buys stocks c. invests money in a mutual fund that buys stocks d. asks a stockbroker to buy stocks for him or her e. puts funds into a trust fund that buys stocks