A high concentration ratio indicates a tight oligopoly


Concentration ratios have often been used to note the tightness of an oligopoly market. A high concentration ratio indicates a tight oligopoly market, and a low concentration ratio indicates a loose oligopoly market. Would you expect firms in tight markets to reap higher profits, on average, than firms in loose markets? Would it matter if the markets were contestable? Explain your answers.

Solution Preview :

Prepared by a verified Expert
Business Economics: A high concentration ratio indicates a tight oligopoly
Reference No:- TGS02744711

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)