1. Suppose that the distribution of sales within an industry is as shown in the
ID: 1100161 • Letter: 1
Question
1. Suppose that the distribution of sales within an industry is as shown in the table.
Firm
Share of Total Market Sales
A
13
B
10
C
8
D
7
E
5
F
4
G
2
H
2
All Other
49
Total
100%
a) What is the four-firm concentration ratio for this industry? ____
b) What is the eight-firm concentration ratio for this industry? ____
Firm
Share of Total Market Sales
A
13
B
10
C
8
D
7
E
5
F
4
G
2
H
2
All Other
49
Total
100%
Explanation / Answer
a) What is the four-firm concentration ratio for this industry? answer: 38%
b) What is the eight-firm concentration ratio for this industry? answer: 51%
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