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10 December, 04:33

A concentration ratio:

measures the percentage of total sales of the top firm in the industry.

reflects the level of competition in an industry.

is inversely related to the price charged by the top firm in the industry.

All of the above are correct.

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  1. 10 December, 04:38
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    Answer: Option (B) is correct.

    Explanation:

    Concentration ratio reflects the level of competition among the firms in an industry. When a concentration ratio is lower in an industry, it represents that greater the competition among the firms and if this ratio is around 100% then there is no competition among the firms, it is a situation of monopoly.
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