1. The table below shows the percentage of sales held by the four largest firms in an industry.CompanyABCDMarketshare(percent ofsales)121053a) Calculate this industry's four-firm concentration ratio.b) Is this industry competitive? why?c) What market type does it most likely represent?

The four-firm concentration ratio is the sum of the market share of the largest four firms. The…

Answered: a) Calculate this industry's four-firm…

a) Calculate this industry's four-firm concentration ratio. b) Is this industry competitive? why? c) What market type does it most likely represent?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 28CTQ: What would be evidence of serious competition between firms in an industry? Can you identify two...

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Question

1. The table below shows the percentage of sales held by the four largest firms in an industry.
Company
A
B
C
D
Market
share
(percent of
sales)
12
10
5
3
a) Calculate this industry's four-firm concentration ratio.
b) Is this industry competitive? why?
c) What market type does it most likely represent?

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