All Evidence Points to the Fact That Firms' Market Power

Multiple Choice

All evidence points to the fact that firms' market power within an industry and industry concentration ratios are

A) directly related, that is, firms' market power is high when concentration ratios are high
B) inversely related, that is, firms' market power is low when concentration ratios are high
C) totally unrelated, that is, they are directly related in some industries and indirectly related in others
D) only moderately related, depending on the degree of competition in the industry
E) low for monopoly and high for perfect competition