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AP® Microeconomics

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Moderate

Limitations of concentration measures

APMICR-164PKP

Concentration measures such as the Herfindahl-Hirschman Index

A

do not account for the geographic spread of the market.

B

are difficult to calculate.

C

are often used as a primary tool to determine a market’s structure.

D

account for firm turnover in highly concentrated markets.

E

are difficult to interpret.