Problems
The definition of the concentration ratio does not use the market shares of all the firms in the industry and does not provide the distribution of firm size. It also does not provide a lot of detail about competitiveness of the industry. The concentration ratios just provide a sign of the oligopolistic nature of an industry and indicate the degree of competition. The Herfindahl index provides a more complete picture of industry concentration than does the concentration ratio.
Read more about this topic: Concentration Ratio
Famous quotes containing the word problems:
“I was a wonderful parent before I had children. I was an expert on why everyone else was having problems with theirs. Then I had three of my own.”
—Adele Faber (20th century)
“If we parents accept that problems are an essential part of life’s challenges, rather than reacting to every problem as if something has gone wrong with universe that’s supposed to be perfect, we can demonstrate serenity and confidence in problem solving for our kids....By telling them that we know they have a problem and we know they can solve it, we can pass on a realistic attitude as well as empower our children with self-confidence and a sense of their own worth.”
—Barbara Coloroso (20th century)
“I am always glad to think that my education was, for the most part, informal, and had not the slightest reference to a future business career. It left me free and untrammeled to approach my business problems without the limiting influence of specific training.”
—Alice Foote MacDougall (1867–1945)