If the Four-Firm Concentration Ratio Is 0

question 3

Multiple Choice

If the four-firm concentration ratio is 0.45,and the top four firms account for $10 million in sales,it follows that total industry sales equal

• A) $28.57 million.
• B) $12.00 million.
• C) $35.00 million.
• D) $15.00 million.
• E) $22.22 million.

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Definitions:

Merchandise Inventory

Goods a company holds for the purpose of sale to customers.

Unearned Rent

Unearned Rent is a liability representing rent payments received in advance for which the services have yet to be rendered or the occupancy period has not yet occurred.

Rental Income

Revenue received from leasing property or other assets to tenants.

Advance

A payment made before it is due or for goods and services yet to be received.