Question

Which of the following represent important shortcomings of using industry concentration ratios to

determine whether the combination of certain firms will result in an increase in market power?

a. Frequent inability to define what constitutes an industry

b. Failure to measure ease of entry or exit for other firms

c. Failure to account for foreign competition

d. Failure to account properly for the distribution of firms of different sizes

e. All of the above

Answer

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