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Domestic concentration ratios alone are not a reliable indicator of actual compe

ID: 1200563 • Letter: D

Question

Domestic concentration ratios alone are not a reliable indicator of actual competition in a market because...[choose two responses]

some markets are characterized by asymmetric information

some competition involves high delivery costs

foreign producers can discourage collusion

competition may be enhanced with market segmentation

some markets are characterized by asymmetric information

some competition involves high delivery costs

foreign producers can discourage collusion

competition may be enhanced with market segmentation

Explanation / Answer

some markets are characterized by asymmetric information

competition may be enhanced with market segmentation

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