Suppose the Larger Firm of a Duopoly Has Sales of $400

question 55

Multiple Choice

Suppose the larger firm of a duopoly has sales of $400 million and the smaller firm has sales of $100 million.The market share of the larger firm is

• A)80 percent.
• B)40 percent.
• C)20 percent.
• D)10 percent.

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Definitions:

Direct Labour Rate Variance

A financial measure that calculates the difference between the actual cost of direct labor and the estimated (or standard) cost.

Actual Production

The total count or volume of units produced by a manufacturing or production process in a specific period.

Normal Production

The expected production capacity or output level under standard operating conditions, without factoring in extraordinary circumstances.

Standard Material Quantity

The specified amount of materials expected to be used in production, serving as a benchmark for cost control and efficiency.