Asked by
jillian moskal
on Dec 19, 2024
Verified
Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. We can conclude that
A) price leadership exists in this industry.
B) the concentration ratio is more than 80 percent.
C) this industry is a differentiated oligopoly.
D) the firms in this industry face a kinked demand curve.
Total Sales
The aggregate revenue generated from selling goods or services over a specified period.
Concentration Ratio
A measure used in economics to assess the degree of market control held by the largest firms in the industry.
Differentiated Oligopoly
A market structure where a few companies control a large portion of the market share and compete by selling similar but not identical products.
- Learn about concentration ratios and their resultant effects.
Verified Answer
JA
Learning Objectives
- Learn about concentration ratios and their resultant effects.