An industry with a high concentration ratio might still be c

An industry with a high concentration ratio might still be competitive if

there are no close substitutes for its product.

it has a high ratio of value added to sales.

its barriers to entry are low.

its production is geographically concentrated.

The profits of a proprietorship are

subject to a corporate tax.

exempt from taxation.

taxed once at the same rate as the owner\'s other personal income.

taxed as capital gains indexed for inflation.

Which of the following indicates a high degree of competition?

A concentration ratio that is greater than 60 percent.

A HHI that is between 1,800 and 2,800.

A HHI that exceeds 2,800.

A concentration ratio that is less than 40 percent.

Solution

ans....
1.
An industry with a high concentration ratio might still be competitive if
Answer – its barriers to entry are low.
High concentration occurs when the concentration ratio ranges from 80% to 100%, a level that indicates the industry is an oligopoly. If the barriers to enter into the industry are less, then the industry with high concentration ratio still can be competitive.
2.The profits of a partnership are
Answer – taxed once as personal income.