Economics 9708 · AS & A Level · 7.6

7.6 — practice question

The five firm concentration ratio for an industry rises from 50% to 60%. Which statement about the industry is correct?

  • AEach firm has become more efficient.
  • BThe industry has become more oligopolistic.
  • CThe industry has benefited from external economies of scale.
  • DThe industry now has fewer barriers to entry.

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