A low concentration occurs when ________________________________________.

Question

There are a few firms making a little of the output for an industry.

The industry is an oligopoly.

There are many firms responsible for most of the sales in the market.

There are a few firms making most of the output for an industry.

Answer 1

A low concentration occurs when there are many firms responsible for most of the sales in the market.

In a market with low concentration, the market is characterized by many players, and no single firm or a small group of firms has significant control over the market share or pricing. This is typically indicative of perfect competition or fragmented markets.