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1. Which one of the following is a drawback of using the
concentration ratio is a measure of competition in the
industry?

A) many concentration ratios include only domestic firms

B) concentration ratios are used to identify Market
structures

C) when the concentration ratios less than 25% Industries are
assumed to be competitive

D) all firms in a particular market are considered when
calculating the concentration ratio for that market

2. which one of the following types of Industries have the
highest Market concentration?

A)pure monopoly B) differentiated competition C)shared monopoly
D) pure competition

3. which of the following acts is designed to reduce the number
of mergers that lessen competition?

A) Sherman act B) Clayton act C) interstate commerce act D)
celler-Kefauver act

4. which of the following is not identified as one of Porter’s
five forces

A) opportunity cost B) threat of new entrants C) threat of
substitute products D) bargaining power of buyers and suppliers

5. which among the following is not a characteristic of a large
government?

A) low government tax rates

B) high government spending

C) More corporate regulations

D) government intervening the international market with tariffs
and subsidies