In a monopolistically competitive market, having a large number ...

[fox]

In a monopolistically competitive market, having a large number of firms in the market means that
 
  A) no firm attempts to take into account the reaction of rival firms.
  B) individual firms will have a large portion of the market giving them monopoly power.
  C) firms will get together and collude because this will be the only way to earn monopoly profits.
  D) firms will cooperate with each other to drive competitors out of the market.

Question 2

A concentration ratio measures
 
  A) the average size of the firms in the industry.
  B) the sales of the three largest firms in the industry minus the costs of these three largest firms in the industry.
  C) the share of industry sales accounted for by the largest firms in the industry.
  D) the excess capacity found in a particular oligopolistic industry.

[joshbk44]

Answer to Question 1

A

Answer to Question 2

C